Looking at the daily XRP chart, there are several key things that the bulls need to keep an eye on.
First, we can see that a death cross is happening today, as the 50 MA (in orange) prepares to cross below the 200 MA (in purple).
The death cross is a bearish indicator, that shows that the short-term average price reflected by the 50 MA, is under-performing the longer-term average price reflected by the 200 MA.
Despite the negative technical ramifications of the last death cross, which took place in early April, the technical picture here isn’t all gloom and doom. In fact, if we look at the last death cross, it happened when the price was at about $0.48.
Shortly after that, the Ripple price exploded to $0.99, within two weeks. Admittedly, XRP then saw a decline all the way to the $0.26 level, which has acted as a powerful support for an entire year.
Also, sticking with the death cross, it’s important to realize that XRP price has been in a big long sideways motion for about a year. It has been volatile at times, but in general, Ripple price has been consolidating sideways for quite some time.
Naturally, the 50 and 200 EMA are going to converge in that sort of a price range, in a way that causes several crosses, which are rather insignificant. While we should definitely note the death cross here, I wouldn’t panic over it. After all, XRP price is currently holding an enormous support zone.
As you can see, the green rectangle on the chart shows how our current area was once major resistance. After XRP price successfully broke out above that resistance, it soared to its all-time high.
Since then, XRP price has returned to this region and is now defining that once-powerful resistance as new support. So, from a pure support/resistance standpoint, the chart looks very good, since XRP has held this area so many times.
Obviously, if XRP begins to fail to hold this area as support, the Ripple XRP price analysis would be neutral. Because XRP is holding this major support zone, but it is below practically every moving average known to man.
On the MACD, we can see that it’s showing a potential failure at resistance (red horizontal trendline). When we look through the history of this support/resistance level on the MACD, we can see that each time it was defined as resistance, there was a selloff.
Also, each time it was held as support, there was a rally. So, the fact that the MACD appears to be defining that level as resistance while preparing to cross over bearish, doesn’t look too good for short-term bullish momentum or price movement.
However, on the RSI, we can see that it is just above the oversold level, which is the bottom of the teal-colored area. So, since XRP is close to oversold levels, while sitting on top of this enormous support region, it gives a neutral outlook while considering the other technical factors.
If we break above the moving averages, my outlook will become more bullish (short-term.) If we break below the green support zone, outlook will become more bearish (short-term).
For now, let’s keep an eye on how XRP responds to this support region. It’s the most important area on the chart.