The fourth-largest digital currency, XRP, has shown its initial bearish indicator for the year, as a “death cross” pattern appears in its short-term chart.
When the short-term moving average (50-hour) falls below the long-term moving average (200-hour), it’s known as a “death cross” and could indicate an upcoming downtrend. This situation arises during a general market selloff, with CoinGlass reporting over $482 million in liquidations within the last 24 hours.
On XRP’s hourly chart, we see the initial appearance of a “death cross” pattern in the year 2025. This pattern could suggest that there might be an increase in short-term downward pressure following the strong upward trend at the start of 2025.
Previously, there were positive signs for XRP as golden cross patterns emerged on both the one-hour and four-hour graphs. A golden cross happens when the 50-day moving average surpasses the 200-day moving average, suggesting a possible increase in price. But, the appearance of a death cross on the hourly charts casts doubts about XRP’s immediate pricing trend.
XRP’s short-term price bottom?
The history of the death cross indicator in predicting bear markets isn’t consistent. Crossovers in moving averages aren’t trustworthy on their own because they use past data and tend to trail behind current prices. Often, by the time the crossover is confirmed, the market has already been oversold and is ready for a bounce back. If this scenario applies, investors will be keeping a close eye on XRP’s price for potential signs of an upcoming recovery.
As a crypto investor, I’ve observed a rollercoaster ride for XRP this week so far. Two out of the past five days have shown positive gains from Sunday onwards.
Right now, the price of XRP is dropping, dipping as low as $2.23 during today’s trading period. At the moment, each XRP is worth approximately $2.25, marking a decrease of 3.32% over the past day. On a weekly basis, its value has dropped by 7.49%.
It’s encouraging to see that bulls have maintained their position above the daily Simple Moving Average (SMA) 50 support at $2.176, suggesting a favorable trend. If they manage to break through $2.50, it could trigger a fresh surge toward $2.72 and potentially even $2.90.
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2025-01-09 19:08