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XRPthe fourth-largest cryptocurrency, has created a “death cross” on short-term charts, a bearish technical indicator that has sparked market interest. This event coincides with a widespread market sell-off, raising concerns about the short-term price direction of XRP.
A death cross occurs when the short-term moving average falls below the longer-term moving average. In the case of XRP, the 50-hour moving average fell below the 200-hour moving average on the four-hour chart. This pattern is often interpreted as a warning of the potential for a larger decline, indicating that negative momentum may be gaining strength.
The cryptocurrency market is witnessing selling pressure towards the end of 2024, with many cryptocurrencies trading in the red zone. Various factors may have contributed to this sell-off, including macroeconomic uncertainty and traders' profit-taking. In the last 24 hours, $238 million worth of cryptocurrency positions were liquidated. As a result, the price of XRP has fallen, struggling to maintain the $2 mark.
XRP drops by 6%
XRP led crypto losses on the second-to-last day of the year, with lower expectations of continued interest rate declines by the Federal Reserve contributing to a decline in Bitcoin and cryptocurrency prices. US stocks also fell as investors reduced their positions amid uncertainty as the end of the year approached.
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XRP is down nearly 6% in the past 24 hours; At the time of writing, it is down 5.96% to trade at $2.02.
XRP is trading within a symmetrical triangle pattern on the daily chart and may remain between the support and resistance lines for some time. An RSI below the midpoint may indicate that bears have an advantage.
The next trend movement is expected to start when XRP price breaks above or below the triangle. A breakout could push XRP above $2.90, while a break below the support line could indicate that XRP has reached its short-term peak. The price of XRP may then fall to $1.62.
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