Based on a closely watched XRP current price chart, XRP has set to form a “death cross” in five months. Looking at the behavior of the chart, crypto analysts have mentioned that the upcoming “death cross” movement of the XRP price could cause a bearish market.
In particular, the 50-day Simple Moving Average (SMA) pattern of the XRP’s price is predicted to fall below its 200-day SMA. In fact, analysts expect this downward trend of the XRP price to occur in the next few days.
On the other hand, the chart also suggests a deeper sell-off. In fact, the sell-off signals a clearer confirmation of the upcoming bearish death cross. Casting our mind back, there have been several death cross incidents over time.
Even the crypto market recorded a death cross movement in February this year. Not only this alone, but March 2020, August 2019, April 2018, January 2017, and May 2016 also saw relatively low crypto prices movement.
Further, there was an occurrence of the same death cross event in May 2014. This caused a quick and deep selling pressure on the crypto market. Briefly, the death cross causes a continuous sell-off. In other words, it produces limited predictive power movement which in turn causes oversold to the market.