Death crosses appearing in the chart of any digital asset can be bad and the XRP price is no different in this regard. The token presently looks to be heading toward another notable drop in price as an analyst points out a looming death cross.
XRP Death Cross Could See Price Fall
According to a crypto analyst who goes by Cheeky Crypto on social media platforms, the XRP price could see a price dip soon as a death cross forms on its chart. The analyst pointed out this formation to his over 152,000 subscribers on YouTube, explaining what this might mean for the digital asset.
The XRP price is currently finding support at the 200-day EMA, although with resistance at the 50 EMA, presenting a close tie between the two for dominance. He also points out a three-way pattern in the chart that could see the digital asset’s price bounce as high as $0.51 before eventually spiraling back downward toward the $0.48 support once more.
Three-way formation suggests a bounce to $0.51 | Source: Cheeky Crypto
Moving forward, the analyst explains that the Elliot Wave formation points toward a fall as low as $0.35, which would represent a 28% decline from its current price level. However, it is not all bad news as the analyst also points out that it is possible bulls are able to overturn this bearish formation by pushing the price above $0.67 which would eventually end up serving as support.
“Before we have that break to the downside, I suspect we get to bounce up,” the analyst said. “We are in the oversold area, I suspect a move up before moving down.”
XRP Price Follows Large Caps Trend
So far, the XRP price has maintained the same trend as the largest cryptocurrencies in the space such as Bitcoin and Ethereum. XRP’s 0.53% gains over the last day stand in line with Bitcoin’s 1.88% and Ethereum’s 1.12%.
What this suggests is a high correlation between the XRP price and the Bitcoin price. As such, if Bitcoin were to continue to move upward, XRP would likely follow suit, thereby invalidating the death cross pointed out by the analyst above.
However, if the pioneer cryptocurrency were to see a reversal and subsequent fall in price, it could be what validates the Death Cross. Such a scenario would likely see the XRP price tumble faster given the already bearish expectations, and selling pressure could easily be higher than that of Bitcoin.
XRP is currently the third-best performer of the top 10 cryptocurrencies by market cap on the weekly chart. The altcoin is seeing gains of 6.26%, coming behind the likes of Toncoin’s TON at 44.32% and Solana’s SOL at 10.25%.
XRP crosses $0.5 resistance | Source: XRPUSD on Tradingview.com
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Author: Best Owie