Death crosses that appear on any digital asset chart can be bad, and XRP price is no exception in this regard. The coin’s current price appears to be headed for another significant drop as analysts point to a looming death cross.
XRP Death Cross Could Cause Price to Fall
According to a cryptocurrency analyst on the social media platform named Cheeky Crypto, XRP price may fall once a death cross forms on the chart. The analyst pointed out the formation to his more than 152,000 YouTube subscribers and explained what it could mean for digital assets.
XRP price currently finds support at the 200-day EMA but encounters resistance at the 50-day EMA, indicating a strong correlation between the two for dominance. He also pointed out a three-way pattern on the chart, with the digital asset’s price likely to bounce back to $0.51 before eventually falling back to the $0.48 support again.
Three-way formation suggests a bounce to $0.51 | Source: Cheeky Crypto
Looking ahead, analysts explain that the Elliott Wave pattern predicts a price drop to $0.35, which would represent a 28% decline from current price levels. However, it is not all bad news, as analysts also note that bulls have the potential to overturn this bearish pattern by pushing the price above $0.67, which will eventually act as support.
“Before the decline, I suspect we’re going to have a rebound,” the analyst said. “We’re in oversold territory, and I suspect there’s going to be a rise before the decline.”
XRP Price Follows Large Cap Trends
So far, XRP price is following the same trend as the largest cryptocurrencies in the space, such as Bitcoin and Ethereum. XRP was last up 0.53%, in line with Bitcoin’s 1.88% and Ethereum’s 1.12%.
This indicates a high correlation between XRP price and Bitcoin price. Therefore, if Bitcoin continues to rise, XRP may follow suit, nullifying the death cross pointed out by the above analysts.
However, if the pioneer cryptocurrency experiences a reversal and subsequent price decline, this could validate the death cross. Given the already bearish expectations, this scenario could cause the XRP price to fall faster and the selling pressure could easily be higher than that of Bitcoin.
Currently, XRP ranks third among the top 10 cryptocurrencies by market capitalization on the weekly chart. The altcoin’s gain of 6.26% trails Toncoin’s TON (44.32%) and Solana’s SOL (10.25%).
XRP crosses $0.5 resistance | Source: XRPUSD on Tradingview.com
