XRP Price Charts First 'Death Cross' Since April 2018

XRP is flashing red this Tuesday morning with a long-term price indicator turning bearish for the first time in over a year.

More importantly the 50-day moving average of XRP's price has crossed below the 200-day MA. That is the first "Death cross" or a long-term bearish crossover since April 2018.

Technical analysis theory considers the death cross as an advance warning of a major sell-off.

In reality the crossover is the result of a major price slide - the MA studies are based on historical data and tend to lag price.

This is evident from the fact that XRP fell from $0.52 to $0.28 in 3.5-weeks to July 16 and the bearish crossover has happened today.

The death cross has worked as a contrary indicator in the past, as seen in the chart below.

XRP fell from a record high of $3.30 to $0.45 in three months to April 1, 2018, and the 50- and 200-day MAs produced charted the death cross on April 9 following which XRP picked up a bid and rose to a high of $0.96 by April 24.

An oversold RSI indicates the sell-off is overdone and potential for a corrective bounce, which happened after the confirmation of the death cross.

The latest death cross could end up bolstering the already bearish setup.

XRP could drop below the support at $0.2825 in the short-run and extend losses toward the September 2018 low of $0.25.