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A death cross formation, a technical event where the 50-day moving average drops below the 200-day moving average, has been officially confirmed by XRP. Generally, this formation is interpreted as a bearish signal indicating a possible downturn.
Death Cross, despite its scary name, is a lagging indicator, so keep this in mind. It does not provide a clear prediction of future price fluctuations. Rather, it reflects recent bearish sentiment in the market. These are the Retroactive Death Cross and the Golden Cross, or reverse formations, but which frequently attract a great deal of attention.
XRP/USDT chart by TradingView
They summarize current trends rather than predicting the future or making major changes to the market. This cross can be explained by XRP’s recent bearish price movements, but this does not guarantee further decline. This chart shows that XRP is approaching important support and resistance levels. The initial level of support is currently at or near $0.50. Holding above this level may help avoid a larger retracement, but if this level cannot be sustained, XRP could test the $0.47 range.
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If the bearish pressure continues, this lower support could act as a tipping point and stabilize the XRP price. On the plus side, XRP could try to rebound towards $0.56, the resistance level that has been difficult to break recently. Due to relatively low production volumes, prices may be slightly stagnant.
If trading volumes increase, especially with whale support, XRP could receive the boost it needs to break out of this bearish pattern. While XRP consolidates around the death cross, traders will be closely monitoring these levels in the near future to see if the asset breaks the current trend or establishes new support. Probably.
