The sixth-largest cryptocurrency, XRP, is teetering on the edge of a significant price movement. Traders and analysts are glued to the hourly chart, where the 50 Simple Moving Average (SMA) and the 200 SMA are dangerously close. A crossover is imminent, but will it be a bullish golden cross or a bearish death cross?
What is a Golden Cross or Death Cross?
A golden cross signals a potential bullish trend. It occurs when the short-term 50 SMA crosses above the long-term 200 SMA. Conversely, a death cross, indicating a potential bearish trend, happens when the 50 SMA dips below the 200 SMA.
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XRP has been consolidating in a range since its July 17 peak of $0.6378. Support lies at $0.542, aligning with the daily 200 SMA. At the time of this writing, XRP is trading at $0.603, having shot up by 0.63% in the course of the past 24 hours.
Bullish or Bearish?
A breakout above $0.61 could ignite a bullish rally, potentially pushing XRP towards $0.64. A subsequent climb above $0.64 might propel the price to $0.74, where resistance is expected.
However, a breach below the daily moving averages could trigger a bearish downturn, dragging XRP towards the critical support level of $0.40.
The Crucial Crossover For XRP
The direction of the moving averages holds the key to XRP’s next move. While the daily 50 SMA is tilting upwards, a definitive crossover on the daily chart might still be weeks or even months away.
As the cryptocurrency market remains volatile, traders must exercise caution. A clear breakout above $0.64 or a breakdown below $0.54 will provide a strong indication of XRP’s future trajectory. Until then, the crypto community watches with bated breath as XRP dances on the precipice of a major trend reversal.
