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Technical analysts know that a death cross involving the 50-day and 200-day exponential moving averages (EMAs) is a bearish signal, and that is what XRP is facing. This predicament developed after XRP was unable to profit from a bullish breakout from the symmetrical triangle, a move that would have raised the price of the cryptocurrency.
Rather, the asset has undergone a substantial breakdown, and the EMAs are currently indicating a downward trend, which is paving the way for additional downside pressure. When the 200-day moving average crosses below the 50-day moving average, it forms a death cross, which is frequently interpreted as a sign of protracted bear markets.
Given the downward trends of both moving averages, XRP may be about to experience a longer-lasting decline. Recent trading sessions have seen a sharp increase in the selling volume, indicating that there is currently little-to-no buying support on the market.
Key price points
At the moment XRP is trading close to $0.54, which has emerged as a crucial resistance level. This price is in very close alignment with the downward-trending 100-day EMA. If XRP is unable to breach this barrier, it can be a sign of additional market weakness and a move lower for the asset.
One important area of support is at $0.50. A breach of this psychological barrier would intensify the bearish trend and might put more pressure on sellers. If XRP is unable to hold onto $0.50, the market's negative sentiment could cause it to rapidly decline toward even lower levels.
The final line of defense is $0.46. At a lower level of historical support, or $0.46, is the location of the next significant support. A decline to this level would indicate that XRP has started a more serious correction, and as traders expect a long-term bearish trend, the death cross might lead to further downside pressure.