Key Takeaways
What does the XRP ‘death cross’ mean for price trends?
The XRP ‘death cross’ is a bearish crossover of two popular, long-period moving averages. It hasn’t occurred yet, but it was about to, if the prices continue to slide.
Do the technical indicators show potential for a recovery?
No, the indicators all show bearish strength, since they lag behind price action. The current downward move could reach $2, and if that fails, possibly as deep as $1.61.
Ripple [XRP] whales were in action once again, offloading 900,000 tokens within just five days. This worsened the bearish pressure the altcoin faced as it fell to the $2.2 demand zone and threatened to break through and fall further.
The falling Exchange Reserves and outflows from exchanges at the beginning of November did not represent enough demand to absorb the recent spree of selling.
The inability to break past the $2.7 resistance, a key local level, cemented the bearish case. Another development could send sentiment deeper into fearful territory.
The significance of the XRP ‘death cross’
Source: XRP/USDT on TradingView
The Moving Averages (MA) are a simple but important tool in technical analysis. Some periods are more special than others, simply because they are popularly cited by analysts and the media. One such pair is the 50-day and 200-day MA pair.
A bearish crossover, when the 50-day MA crosses below the 200-day MA, signals potential downward momentum. This is the essence of the XRP ‘death cross,’ with the 50-day MA now approaching a drop beneath the 200-day MA.
The CMF was at -0.06, at press time, signalling heavy selling pressure on XRP. The Awesome Oscillator’s red bars reflected that bearish momentum was strengthening in recent days. It has been below the zero line for nearly a month, showing consistent downward momentum.
The A/D indicator was forming lower highs over the past three weeks and in steady decline, another sign of bearish pressure.
Overall, it appeared likely that XRP would drop to the $2 psychological level, and possibly even further south. The next high timeframe horizontal levels to watch were $2, $1.9, and $1.61.
Meanwhile, $2.7 is the swing high for bulls to beat to shift the structure bullishly.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Source: https://ambcrypto.com/xrp-death-cross-looms-can-bulls-defend-2-before-a-deeper-fall/
