XRP is on the verge of a bearish “Death Cross” – support is available for $ 0.51

The XRP chart is likely to make its first “death cross” in five months, an indicator that is seen as a signal of a bear market.

The 50-day Simple Moving Average (SMA) of XRP is expected to dip below the 200-day SMA in the next day or two, confirming what is known as the Death Cross. In theory, this pattern implies a deeper sell-off, but historical data suggests otherwise.

The previous events, observed in early February 2021, March 2020, August 2019, April 2018, January 2017, and May 2016, marked long-term or temporary lows.

The Death Cross’s dire record is unsurprising as moving averages move slower than price. In other words, a death cross is the result of an ongoing sell-off and has limited predictability. The market is often oversold when the death cross is created.

XRP / USD daily chart | Source: TradingView

Previous death crosses (top left) were accompanied by over-selling. This can be seen in the Relative Strength Index (RSI) when it is below 30.

This time, however, the RSI has not yet reached the oversold zone and is trending down. So it cannot be ruled out that this death cross will lead to a strong sell-off at XRP.

The next support found at the June 22nd low is at $ 0.51, followed by $ 0.43, which is the 61.8% Fib retracement level of the December-April rally June 29th at $ 0.73 is the level the bulls will have to recapture to start a new rally.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

SN_Nour

According to Coindesk

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