The recent market-wide sell-off struck Ripple's stock price hard and does not appear to be letting up.

The first Death cross in five months appears to be on the way for XRP amid news that a judge decided that a former regulatory official can be questioned as part of the ongoing legal battle over the sale of $1.3 billion worth of XRP. 

Ripple has labelled the claims as false and argues the SEC doesn’t have the authority to regulate XRP because it’s a medium used in international and domestic transactions.

Bitcoin’s inability to recover from strong support levels also caused a lack of demand in the market which has led to a price drop for most altcoins, XRP included.
Furthermore, the 50-day moving average has moved closer to the 200-day moving average, confirming the so-called bearish death cross. 

XRP’s Previous Experience With Death Cross

The death cross is a technical chart pattern indicating the potential for a major sell-off. It appears when the asset’s short-term moving average crosses below its long-term moving average.

Previous occurrences of the death cross in XRP price have happened in early February this year, March 2020, August 2019, April 2018, January 2017 and May 2016 and marked major or interim price bottoms. The one in May 2014 brought immediate selling pressure to the market.

However, death crosses are the outcome of a long-term sell-off and they’re not always predictive. By the time the crossover occurs, the market is often already oversold.

At the time of writing, the value of XRP has dropped to $0.57. While the price is currently holding steady, the bearish pressure is strong and the price could fall further if the current market structure continues.

On the other hand, if the Ripple price manages to break towards the upside, then it needs to close above the declining trend line of $0.63 as well as the critical resistance level of $0.65. The bullish outlook would then lead the cryptocurrency upwards until the psychological resistance level of $1.

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