XRP, the fifth-largest cryptocurrency by market capitalization, is showing oversold signals. The four-hour chart displays a pattern known as a “death cross,” indicating a bearish trend.
However, historical data suggests that previous instances of “death crosses” for XRP have often marked the bottoming phase for the cryptocurrency. After trading in the red for six consecutive days, XRP appears oversold and could potentially experience a short-term rally.
Traders should watch closely as consolidations like the current one often precede major breakouts. If the bulls can prevent XRP from falling below $0.47, there is a possibility of an upside breakout. At the time of writing, XRP is trading at $0.486, showing a small increase in the last 24 hours.
A break and close above the moving averages would indicate strength and could lead to a potential uptrend. On the other hand, if XRP drops below $0.47, support levels at $0.46 and $0.41 may come into play.
Source: UTODAY
