The price chart of the popular altcoin XRP confirms a golden cross pattern that occurs when an asset’s relatively short-term moving average rises above its long-term moving average.
The golden cross is often seen as a potential indicator of an uptrend, and after 15 months XRP is forming this pattern for the first time. According to the analyst who brought this to the attention of the crypto community, the altcoin price chart has created a golden cross between the 50-day and 200-day moving averages.
The analyst, known on Twitter as Lukasz Wydra, advised traders to follow the XRP price pattern in the coming days to see the impact of the rare event. told.
“XRP confirms a golden cross pattern between the 50-day and 200-day moving averages. The coming days will show how this will affect the price action. Meanwhile, the consolidation continues, while the RSI and MACD continue to rise.”
It is worth noting that a golden cross last appeared on the XRP chart on July 17, 2021. After this crossover, a price increase of over 170% followed and XRP managed to trade around $1.40 before the downtrend reversed.
Altcoin has confirmed this formation, but what are the stages of the formation in question? Announcing the formation in question, according to Investopedia, “The golden cross has three phases. The first phase requires the asset to bottom out at the end of a downtrend as selling pressure wears off. In the second phase, the shorter moving average creates a crossover over the larger moving average to confirm a breakout and trend reversal. The final stage is the continued uptrend for the continuation of higher prices.” XRP can also follow these steps.
Koinfinans.com As we reported, analysts and traders often view the golden cross as a potential signal for an upcoming meteoric price uptrend. Hence, this is expected to attract more buying interest, which in turn triggers an additional price increase.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.