XRP Forms Death Cross Against Bitcoin: What Lies Ahead?

XRP, the third-largest cryptocurrency by market capitalization, has created a “death cross” against Bitcoin on the hourly chart, a technical pattern that implies downward momentum ahead.

This comes as the broader cryptocurrency market experienced selling pressure at the close of Wednesday trading, resulting in liquidations worth more than $976 million, according to CoinGlass data.

The death cross observed on the XRP/BTC hourly chart occurred when the 50-hour moving average fell below the 200-hour moving average.

While hourly signals do not have the same weight as daily or weekly indicators, they can serve as early warning signs of trend reversal in the current direction — in this case, a potential decline in XRP’s relative strength against Bitcoin.

On Wednesday, XRP fell sharply against Bitcoin, continuing its decline from Tuesday, dropping from 0.00002962 to 0.00002598 in a flash.

This comes as the XRP price declined roughly 12% from $3.55 to $3.05 during the Wednesday trading session. At press time, XRP was still down 2.31% in the previous 24 hours, trading at $3.21.

Recovery imminent?

On July 6, XRP reversed a downtrend against Bitcoin and began to trend upwards, with a 12-day rise lasting until July 17. It reached 0.00003070 subsequently before encountering resistance. After falling to a low of 0.00002517 in the early Thursday session, the price rebounded quickly, confirming support at this level.

The recent drop could be a shakeout and not indicate a reversal until clearer signals emerge.

Following yesterday’s sharp drop, XRP sharply rebounded from a low of $2.96, showing signs of a potential bullish reversal. High trading volumes imply institutional buying as prices entered oversold territory.

According to Ali, a crypto analyst, whales bought over 280 million XRP in the past 10 days.

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