For the first time in 15 months, XRP, the sixth-largest cryptocurrency by market cap, has created a "golden cross" pattern. The appearance of a golden cross is seen by analysts as a bull market indicator. By crossing over the moving average (MA) 200 on October 23rd, XRP's daily moving average (MA) 50 confirmed the "golden cross" price pattern, a protracted bullish sign.
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| Source: TradingView, UToday |
Will an XRP rally occur if such a golden cross forms?
The emergence of the golden cross is typically regarded by
analysts as a bullish event. Additionally, the golden cross is currently
visible on the XRP charts. The indicator has made previous several appearances
on the token's charts. On July 17, 2021, it happened for the final time. It was
also followed by a price increase of 176%. Before turning downward, the token
rose to a high of $1.41.
The golden cross is typically interpreted by analysts and
traders as a signal of an obvious rise. Because trend-following traders may
become more interested in buying as a result of the most recent cross, prices
may rise further.
The golden cross is not all-inclusive, though. Nevertheless,
caution should be used when purchasing an asset. Because moving averages track
price, there are times when purchasers are trapped on the incorrect side of the
golden cross. A crossing can arise at any time when an asset has been
overbought and ready for a downturn.
At the time of publication, the price of XRP was $0.446857,
down 2% over the previous day. The token's value has decreased by 7% over the
past week and by 10.2% over the past two weeks. In addition, it has decreased
by 86.9% from the $3.40 record high it reached on January 7, 2018.
What about your thoughts about the golden cross formation of
XRP? Do let us know in the comments below.
Disclaimer: The opinion expressed here is not intended as investment advice and is only provided for informational reasons. Occasionally, GatewayPK may not agree with the opinions stated here. Every investment and every sort of trading involves risk, therefore you should always do your own research before making decisions. We don't suggest making investments that you can't afford to lose money on.
