Ripple (XRP) is on the verge of forming a so-called “golden cross,” a phenomenon that occurs when a short-term average, such as the 50-day exponential moving average (EMA), crosses over a long-term average, such as the 200-day EMA.
A golden cross is often considered a strong bullish signal.
XRP Poised for a Major Price Surge?
A golden cross is a lagged indicator, meaning that it primarily provides information about previous price movements. Despite this retrospective nature, the indicator is of great importance to traders, as it can signal a shift in market sentiment, from a neutral or bearish stance to an optimistic outlook.
Currently, XRP is trading around $0.57, just below the critical resistance level of $0.58. Breaking this level is of huge significance as it would not only confirm the golden cross but also open the door for a major price surge.
Be careful
Although the technical setup looks positive, there are some signs that warn for caution. Namely, the trading volume is decreasing, which could indicate a weakening of the uptrend. If the volume does not increase convincingly, the chances of a successful breakout decrease.
In that case, a short-term correction is possible. However, XRP also remains dependent on the broader sentiment in the crypto market and the price of Bitcoin. If Bitcoin can convincingly resume its upward trend, XRP could still make significant gains. For now, it is a matter of waiting, but there is certainly reason for optimism for XRP holders.
Lawsuit with the SEC ends
External factors are also contributing to XRP’s strong momentum. Ripple recently achieved a major victory in its years-long lawsuit against the US Securities and Exchange Commission (SEC).
For years, the dispute with the SEC hung over Ripple and the XRP price like the sword of Damocles. With a $125 million settlement, the storms have finally calmed down, and for the first time in a long time, Ripple has the wind in its sails again. This could pave the way for new successes for the XRP price.
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Source: https://newsbit.nl/ripple-xrp-koers-op-het-randje-van-een-golden-cross-doorbraak/
