The price of XRP experienced a 4.54% drop yesterday, and that was the biggest daily decrease for it since the last week of September. Along the way, the altcoin lost the $3 price mark and found the bottom at around the $2.85 level. While a 5% dip may not be considered serious in crypto, the market cap decrease worth $7 billion is much more a stark indicator of how big it was.
But today’s story is not about what already happened with the XRP price but rather what lies ahead for the fourth biggest cryptocurrency.
If you take a look at the XRP price chart, you will see a pretty interesting pattern — a death cross. When the 23-day moving average crossed below the 50-day one, it confirmed a technical formation that usually signals a prolonged phase of pressure.
The timing makes it even more relevant, as the cross happened right as the sell-off was happening, showing the weakness that pushed XRP under the $3 threshold.
Best “worst” scenario
The best “worst” scenario now is finding support at the 200-day moving average on the daily time frame, which currently sits at $2.64. That level has been a real game-changer in the past, and if it can hold on to it, it will show that the bigger uptrend is still in place, even with some short-term setbacks.
If XRP drops to $2.64, that will be the lowest it has been since early August, and it could shake confidence. But it would also show a clear floor, where it might start building up again.
For traders on the other side, the best way to neutralize the pattern and ease concerns raised by the death cross is to quickly regain $3 and push above $3.10. Until then, XRP is trading under a bearish setup.
Source: https://u.today/death-cross-puts-xrp-in-danger-zone-best-worst-scenario-revealed
