The XRP value is going through a particularly essential juncture, which might grow to be a make-or-break second for the cryptocurrency. After the XRP token managed to rally nearly 100% after the abstract judgment within the case between Ripple Labs and the US Securities and Alternate Fee (SEC), there’s nearly nothing left of the features simply 43 days after the ruling, NewsBTC reported.
Nonetheless, that is removed from the worst. The current value decline has introduced XRP to key help ranges that have to be held in any respect prices to keep away from one other deep fall. On the similar time, there’s hope as a result of formation of a particularly uncommon golden cross on the 1-week chart.
Golden Cross: A Beacon For XRP Bulls?
As of August 25, 2023, XRP stands at $0.5115. The weekly chart reveals the much-discussed golden cross, a phenomenon the place a short-term transferring common surpasses a long-term one, usually hinting at a shift from a bearish to a bullish pattern. In XRP’s case, the 50-week EMA has moved above the 200-week EMA.
This motion is usually seen as a harbinger of an impending upward trajectory. Nonetheless, the tokens value is teetering simply above the 200-week EMA, pegged at $0.5083. A weekly shut beneath this determine might spell bother.
Not solely wouldn’t it undermine this important indicator, nevertheless it may also negate the golden cross’s significance. Furthermore, the uptrend line (black), which has been intact since early January, might be jeopardized if XRP dips beneath the $0.50 mark on a weekly foundation.
Given this backdrop, the golden cross on the weekly chart is a beacon of hope. But, the dangers are palpable. Ought to the token breach the $0.50 threshold on a weekly timeframe, a sharper decline appears imminent, doubtlessly plummeting to the 78.6 Fibonacci stage at $0.4350.
Earlier than doubtlessly hitting the yr’s low of slightly below $0.30, XRP would possibly discover help at $0.41 and $0.36. As in earlier weeks, information of the authorized battle between Ripple and the SEC are probably the most potent catalysts for an XRP value rally. Whereas the SEC’s interlocutory attraction is at present beneath assessment by Choose Torres, the trial is just not scheduled till mid-April subsequent yr.
A Historic Perspective
Remarkably, XRP has solely seen one golden cross on a weekly foundation in its historical past. This was on the finish of November 2020.
XRP noticed a rise of 196% in three weeks. Nonetheless, as everyone knows, XRP’s rally was prematurely thwarted by the US Securities and Alternate Fee’s lawsuit towards Ripple Labs and the declaration of the XRP token as a safety. Due to this fact, the golden cross didn’t materialize, whereas the worth crashed.
Most likely, the following week or two will inform if the golden cross chart sample will play out this time.
Featured picture from Medium, chart from TradingView.com