XRP The price created the first Moving Average (MA) crossover of the year and it was a golden cross. The last time such an event occurred on the XRP daily chart was in October 2022.
A gold crossover, which occurs when a short-term moving average crosses over a long-term moving average, is interpreted by analysts and traders as a bullish signal. XRP daily MA 50 has risen above MA 200, confirming the so-called “golden crossover”.
For most of March, XRP rose as optimism about the Ripple-SEC case rose. Ripple CEO Brad Garlinghouse stated that the Ripple-SEC lawsuit will be “very important for the entire industry.”
In a five-day winning streak, the sixth largest cryptocurrency unit reached a high of $ 0.589 on March 29. As investors profited, the rise waned. XRP fell 3% daily to $0.5063 in line with the recent crypto market dips. In the past seven days, the cryptocurrency has lost 9% of its value.
As we have reported as Koinfinans.com, although the “Golden cross” means a clear uptrend, it is not an absolute indicator. Therefore, it can trap buyers on the wrong side of the market. This is because the token is already overbought and golden intersection is the possibility that a correction will be made when it occurs.
The negative market effects of the FTX crash rendered the October 2022 gold cross invalid. As the crypto market plummeted following the FTX crash, on November 10, XRP dropped to as low as $0.31. However, another notable pattern is developing on the XRP daily chart. Bull flag formation. The bull flag chart pattern is a continuation pattern that looks like a downward sloping channel or a rectangle with two parallel trend lines. As profit taking takes place, the price forms a tight range with slightly lower and higher values before the bulls regain control and encourage another rise.