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XRP, the popular cryptocurrency, is back in the spotlight on the crypto market, with its price action grabbing the attention of many. Today, XRP saw its price climb over 8% and reach a peak of $0.75 - its highest level since July 2023. The price movement is pretty impressive, but what is really interesting is what is happening with the patterns on the XRP price chart.
The thing is, the cryptocurrency had been bracing for a potential "death cross" on its daily chart. This technical signal happens when a short-term moving average, like the 50-day, crosses below a longer-term moving average, like the 200-day.
It is usually seen as a bearish indicator, meaning it suggests that the price could go down. The market was keeping a close eye on the 50-day moving average, which had been on a downward trend and was on track to cross below the 200-day moving average.
Fortunately, the death cross has now been avoided thanks to a shift in the trajectory of XRP's price. The 50-day moving average, which was on its way down, has started moving up again recently. This change suggests that the downtrend may have been halted, at least for now.
For XRP, this reversal in momentum is seen as a positive sign, especially after such a strong rally, with prices adding 40.5% since the beginning of November. The recent surge in value has not only helped to cancel out the looming death cross but has also gotten people enthusiastic about whether this positivity could continue.