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XRP Forms First Death Cross of the Year: Can Price Still Rebound?

source-logo  thecryptobasic.com 03 February 2024 10:56, UTC

XRP price has seen one of the most uncertain trends in recent times with the formation of a “Death Cross” spotted on the daily price chart.

Over the past 24 hours, XRP has grown from a low of $0.4982 to a high of $0.5101 before finally cresting at $0.5014 amid a slight uptick of 0.15% in the past 24 hours. The wavy motion of XRP has pushed the cryptocurrency to print its first Death Cross of the year.

Death Crosses are typically bearish and they are formed when a “short-term Moving Average (MA) crosses below a longer-term Moving Average.”

The XRP Death Cross

Per the XRP/USD 1D Chart as shown below, the 50-Day Moving Average (in red) has slipped below the 200-Day Moving Average (in blue).

XRPUSD 1D Chart on TradingView

The cross-over was recorded around the $0.504 price mark, a level that has constantly been flagged by market analyst Crypto Rover.

Though XRP snapped back quickly from its freefall as it dropped below the 3-year consolidation pattern earlier this week, the Death Cross formation shows that the bearish sentiments are far from over.

The Death Cross depicts much information that shows the current drawdown in XRP’s price is not sudden, but has been in place for quite some time.

This fact cannot be dismissed considering the July 13 ruling from Judge Analisa Torres failed to produce a sustainable bullish rally for the digital currency.

Over the past year, XRP has managed to grow to a high of $0.93 following the legal victory. However, it has persistently traded below this level following a drop from this high.

Is All Hope Lost for XRP?

Despite its unimpressive price action, Xhas remained one of the most capitalized cryptocurrencies. While this is not the right judge of growth, it underscores how the coin is staying resilient in relation to the broader market.

Beyond the evolution of the XRP Ledger (XRPL) and the growth prospects associated with Ripple Labs, the general market sentiment ahead of the forthcoming Bitcoin halving event is likely to impact the digital currency positively.