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Technical analysts know that a death cross involving the 50-day and 200-day exponential moving average (EMA) is a bearish signal and that is what XRP is facing. This predicament occurred after XRP failed to benefit from a bullish breakout from the symmetrical triangle, a move that drove the cryptocurrency’s price higher.
XRP/USDT chart by TradingView
Rather, the asset has undergone a significant breakdown and the EMA is now trending down, paving the way for further downside pressure. A death cross forms when the 200-day moving average falls below the 50-day moving average, which is often interpreted as a sign of an extended bear market.
related
Considering the downward trend of both moving averages, XRP may end up experiencing a prolonged decline. The sell volume has increased sharply in recent trading, indicating that there is currently little buying support in the market.
Main price point
Currently, XRP is trading around $0.54, which has emerged as a key resistance level. This price aligns very well with the 100-day EMA, which is trending down. If XRP fails to break through this barrier, it could be a sign of further market weakness and a decline in the asset.
One important support area is $0.50. Breaking through this psychological barrier could strengthen the bearish trend and put additional pressure on sellers. If XRP is unable to sustain $0.50, negative market sentiment could cause it to rapidly decline towards even lower levels.
The last line of defense is $0.46. The lower level of historical support, i.e. $0.46, is the next significant support location. A decline to this level signals that XRP has begun a more serious correction, and a death cross could lead to further downside pressure as traders anticipate a long-term bearish trend.
