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U.Today - Renewed downside pressure is putting pressure on XRP against Bitcoin after two back-to-back death crosses appeared on the daily XRP/BTC chart. Historically, when this occurs, investors interpret it as a sign of weakness in the short-term momentum of the asset.
An initial cross occurred when the 23-day moving average dropped below the 200-day average. Soon after, the 50-day curve also fell below the 200-day average. Together, such a sequence hints that a trend is cooling off or losing steam.
But if you shift to the weekly time frame, things are not as clear-cut. In fact, a golden cross — where the 50-day average crosses above the 200-day average — has just formed there, too.
Though the candles are weekly, the averages are based on daily data. Since these signals are based on longer-term trends, their effects usually take time to play out, without canceling out what is taking place in the meantime.
Right now, XRP is sitting between two opposing signals. One suggests it could be heading lower in the short term, the other shows potential support building slowly in the long term. This leaves the outlook a bit mixed.
Bitcoin pulling ahead does not help the situation either. It just set a new all-time high of $111,880, with its market dominance climbing to 63.9%. Meanwhile, XRP’s dominance is at 4.13% and has shown little change.
It is likely that XRP will continue to struggle against Bitcoin unless it starts to push back above some of these key moving averages in the near term.