XRP Nears a ’Death Cross’ - What Historical Patterns Reveal About Price Direction
XRP flirts with technical doom as death cross formation looms—a pattern that's historically spelled trouble for the cryptocurrency.
Technical Breakdown
The 50-day moving average threatens to cross below the 200-day marker, creating the ominous 'death cross' that technical analysts watch like hawks. Previous instances saw XRP tumble—sometimes dramatically—as momentum shifted decisively bearish.
Market Psychology at Play
Traders brace for potential downside when these moving averages converge. The pattern signals weakening short-term momentum against longer-term trends, often triggering automated sell-offs and panic dumping.
Historical Precedent
Past death crosses delivered anything from modest corrections to full-blown capitulation events. The severity typically depends on broader market conditions and whether fundamental factors amplify the technical signal.
Because nothing says 'sound investment' like a chart pattern named after mortality—just what crypto needs more of.
Whether this proves another buying opportunity or the start of deeper declines remains unclear, but history suggests volatility ahead as technical and fundamental forces collide.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
What Wall Street Expects
Wall Street is expecting that AMC will report a quarterly loss of $0.17 per share in its Q3, which will mark a year-over-year decline of 325%. It is anticipated that revenues will amount to $1.24 billion, which will be down 8.1% compared to the year-ago quarter. Is AMC likely to beat these earnings estimates?
As seen below it has a mixed recent record when it comes to outperforming expectations.
Key Issues Ahead of Earnings
In Q2 AMC reported some top of the bill-like figures. Global attendance increased by 25.6% compared to the same period last year, with nearly 63 million guests. Revenue also saw a substantial rise, up 35.6% year-over-year, driven by a robust box office performance and strategic marketing initiatives. This revenue growth contributed to an impressive 391.4% increase in adjusted EBITDA, reaching $189.2 million, which was nearly five times the previous year’s figure.
However, increasing economic uncertainty and faltering consumer confidence are likely to provide Q3 figures with a bad review. Admissions revenue is expected to drop sharply due to lower ticket sales and pricing pressure. Food and drink sales are also tipped to lose their fizz due to reduced customer numbers and lower spending on non-essential items. Demand for premium seating is also likely seen a drop in demand.
AMC is also continuing to see intense competition from streaming service providers in the chillier Autumn months. Although investors may want to hear more about the relationship between AMC and Netflix.
During Halloween AMC played Netflix’s (NFLX) most-popular movie in its history, KPop Demon Hunters, at its approximately 400 AMC screens across its theatres in the U.S. and Europe. While the two companies have not had a commercial relationship in recent years, both Netflix and AMC are apparently “intrigued by the mutually beneficial opportunities that could arise from this and future collaboration.”
AMC is also being talked about as being a meme stock grabbing investor attention right now. AMC stock is down 35% this year, so will less than star-like results add to or diminish the frenzy?
Is AMC a Good Stock to Buy Now?
On TipRanks, AMC has a Hold consensus based on 1 Buy, 5 Hold and 1 Sell ratings. Its highest price target is $4.50. AMC stock’s consensus price target is $3.40, implying a 31.78% upside.
