Interesting indications regarding a possible moving average crossover—which may be a death cross or a golden cross—are starting to appear as XRP plots its path in 2024.
The market is monitoring the present decline in XRP’s price because it knows what this means for the cryptocurrency’s future trajectory in the next weeks and months.
When a cryptocurrency’s short-term moving average drops below its long-term moving average, it forms a death cross, which suggests a shift in momentum and potential downturn. The 50-day simple moving average (SMA) passes below the 200-day SMA to decide it. If it appears in reverse, the golden cross is considered a bullish signal.
Given the cryptocurrency’s projected price, traders and experts are becoming concerned about the convergence of moving averages in the case of XRP. There is selling pressure on the XRP price, which increases the possibility of a death cross.
As of this writing, XRP had already down 19.77% in April and was down 2.35% over the previous day to $0.505.
The cryptocurrency had its first death cross of the year in January, so if one were to occur, it wouldn’t be the first time such a bearish indication has emerged. This was prior to the price of XRP bottoming out and then rising again. Three months after the death cross formed in January, XRP would go on to hit highs of $0.748.
In the world of cryptocurrencies, history may repeat itself, therefore traders and investors are thinking that if a death cross shows up once again, something similar may happen.
Moving average crossings are viewed by some analysts as lagging indicators since they might indicate that the market was overbought or oversold prior to the appearance of a death cross or golden cross.
If this is true for XRP, then a comeback after the death cross might be anticipated, supporting the theory put out by certain analysts that the price of XRP may be currently enacting a bottoming fractal.
