Looking at the daily XRP chart, the upcoming “death cross” now seems inevitable. The last “death cross” in the XRP market took place in February, but after 2 days, the upturning market eliminated this moving average crossing and we saw the continuation of the uptrend. However, there are differences between the current market conditions and the February period.
XRP/USDT Daily Chart
Could the “death cross”, which is interpreted as a bearish signal for XRP, also be a sign for the general market situation? So, does XRP have the power to influence the general perception of the market? Some analysts think it has an effect.
When we look at the chart, the 50-day simple moving average, which seems inevitable, slides below the 200-day simple average (death cross) in the next few days.
The death cross, which was last seen in the crypto market in February, was previously seen in March 2020, August 2019, April 2018, January 2017 and May 2016, and the degree of declines was relatively weak.
However, the death cross seen in May 2014 caused a rapid and hard selling pressure. In short, moving average negative crossover as a single criterion may not imply a definite decrease. This should be supported by other indicators as well. Taking a position based on a single indicator in technical analysis may not yield healthy results. But such a moving average crossover, which the majority of the market follows and gives a name to, should be watched carefully.
A “death cross” took place in the Bitcoin market
Bitcoin (BTC) experienced a death cross on June 19-20 (about a month ago). Although the market, which was at the level of 35,000 dollars at that time, did not see large decreases as expected in the last month, it could not be eliminated from the downward trend. Analyzing the chart, it can be seen that a resistance area formed just below $32,000 is preventing BTC from losing any further value.
BTC price, on the other hand, seems to be stuck between the 31,600-800 range and the 50-day SMA. The slope of the 50 SMA is on the downside. It looks like there will be no talk of a rebound unless a weekly close above $35,000 comes in. On the other hand, the downward outlook seems to increase the stress in the market day by day. If the entry of XRP, one of the big-capitalized altcoins of the market, into the de-death cross stage is interpreted as an additional stress, a volatile downward movement may be at the door.