In technical indicators, Ripple (XRP)’s chart is preparing for the “death cross” for the next 5 months. While analysts interpret this as a bear market sign, we examine the technical comments of expert analyst Omkar Godbole…
History of Ripple (XRP) points to the opposite side
The 50-day SMA of XRP price is expected to drop below the 200-day SMA in a day or two, confirming the bearish death cross in words. Although the model means a deeper sale in theory, historical information shows the opposite, as the analyst points out. Cryptocoin. com, observed in early February of this year, March 2020, August 2019, April 2018, January 2017 and May 2016, indicated the main or middle price floors. One in May 2014 brought immediate selling pressure to the market.
The pessimistic record of the Death Cross as a safe indicator is hardly surprising, as the MA relies on retrospective data, as well. In other words, death crosses are the result of a long periodic sale and have finite predictive power. More than once, the market tends to be oversold when the crossover occurs. Finally, analyst Godbole cites that previous bearish crossovers (above left) have also been accompanied by oversold or RSI below 30.