Popular altcoin XRP A technical formation has emerged on the short-term charts of , which will worry investors. The simple moving average (SMA) 50 crossed below the simple moving average (SMA) 200 for both price charts, confirming the “death crossover,” a bearish indicator that indicates a short-term price decline may turn into a more sustainable downtrend.
Bitcoin spot ETFConsidering the sharp price drop seen for XRP in the first week of 2024 after rejection rumors worried the market, the death cross has come just in time for the bears.
Crypto As the market crashed on January 3, XRP quickly fell from around $0.61 to a two-month low of $0.50. The sixth-largest cryptocurrency then faced bids below the daily MA 50 and 200 at $0.619 and $0.579, respectively.
Koinfinans.com As we reported, at the time of writing this news, XRP fell by 2.02% to $ 0.566 in the last 24 hours. According to TradingView data, XRP may be preparing to end its first red week of 2024 with an 8% decline.
Why Isn’t This A Worry?
Some experts consider the death intercept to be an unreliable indicator. Because it is based on backward moving averages, it lags prices and has proven to be a contrarian signal. While in theory a death cross predicts a deeper sell-off, historical data shows that most XRP death crosses mark major or intermediate market bottoms.
This may be because death intercepts occur after a rapid decline and are therefore unreliable as independent predictors. The market may be oversold when a crossover occurs. If the market bounces back, the bulls must surpass the December 28 high of $0.658. If declines continue, XRP price may return to the January 3 low of $0.50.