In a recent turn of events, crypto analysts Lord Crypto and CryptoBusy have raised concerns about the precarious position of XRP. Lord Crypto shared his analysis on X (formerly known as Twitter), highlighting XRP’s significant price decline, with the digital asset shedding nearly 50% of its value since the post-lawsuit rally. Notably, XRP has plummeted by 46% from its peak of $0.9380 in July.
$XRP / $USDT – 1D
— Lord Crypto (@lord_crypto4) September 25, 2023
From its SEC news pump, $XRP has lost almost 50% in price.
⚡️The BMS Band has flipped and is widening, signifying a bearish future.
⚡️Unless another bullish news is released, we'll see another slight dump towards the main support area of $0.42.
Let's see if… pic.twitter.com/zvC57PKKmA
The analyst draws attention to the BMA Band, specifically noting the crossover of the 20-week Simple Moving Average (SMA) (red) above the 21-week SMA (green). This crossover has led to an increasing gap between both SMAs, indicating potential downward pressure unless there are bullish catalysts or positive developments. The accompanying chart reveals that XRP has encountered persistent descending resistance levels since mid-August, a pattern that emerged during the correction from the $0.9380 high.
Furthermore, as XRP attempts to rally, it faces resistance at lower price levels, making it progressively challenging for the asset to reach higher price points. Conversely, the chart indicates that XRP’s support levels have risen, preventing more significant price declines.
However, Lord Crypto identifies a critical support level at $0.42, emphasizing that without new positive developments or news, XRP may be susceptible to another decline, possibly approaching the key support at $0.42.
CryptoBusy, a crypto-focused media and analytical account, focuses on forming a symmetrical triangle on XRP’s daily chart. This pattern, evolving since mid-August, features converging trendlines, typically signaling market indecision. Neither buyers nor sellers exert full control within such a triangle, leading to uncertainty. In light of this, CryptoBusy shared his advice through X (formerly known as Twitter) caution for XRP traders.
Be Cautious on Trading #XRP!🚨$XRP is consolidating within this symmetrical triangle.
— CryptoBusy (@CryptoBusy) September 25, 2023
Which means that buyers and sellers are currently indecisive, and neither has gained control over the market.
I wouldn't enter unless you're into scalping or intraday trading. pic.twitter.com/2Nq9kI2icK
This pattern implies that predicting XRP’s immediate direction is challenging, suggesting that short-term trading strategies, such as scalping or intraday trading, may be more suitable for capitalizing on smaller price fluctuations. Adding to the complexity of XRP’s situation is the potential formation of a death cross on the daily chart.
A death cross is a technical indicator when a shorter-term moving average, specifically the 50-day Exponential Moving Average (EMA), falls below a longer-term moving average, which is the 200-day EMA. XRP last experienced a death cross in December 2021, leading to a significant decline in value.
XRP is currently facing a potential risk of another death cross as the 50-day EMA ($0.5289) is approaching a potential cross below the 200-day EMA ($0.5195). This is contributing to the current bearish sentiment surrounding the cryptocurrency. Moreover, XRP is currently trading at $0.5016, below both the 50-day EMA ($0.5289) and the 200-day EMA ($0.5195), further highlighting the prevailing bearish sentiment.
