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Technical indicators are lining up for what may be one of the most important trend confirmations in recent months: the 50 EMA is about to cross the 100 EMA from below. XRP is displaying a strong bullish continuation. The acceleration stage of XRP's current rally may be indicated by this final golden cross, which is frequently interpreted as a late-cycle confirmation signal.
Following a breakout above the resistance levels of $2.40 and $2.80, XRP exploded toward the $3.50 mark, printing a string of high-volume bullish candles. Although the price is still holding close to its local highs, a critical divergence has begun to form beneath the surface, and trading volume has been steadily declining ever since the local top was reached.
This volume decline is the only significant issue in an otherwise textbook bullish trend. For strong uptrends to be confirmed, volume must usually be rising or sustained. If buyers do not reenter the market and momentum stalls, XRP might find it difficult to sustain its current rate or possibly face a brief decline.
The moving average structure, however, is still pessimistic. The 100 EMA is currently trailing just below the 50; if momentum continues, a cross is imminent. A few weeks ago, the 50-day EMA already pushed above the 200 EMA. All of the main EMAs stacking in ascending order is a rare alignment that typically signals powerful macro-level trend reversals and long-term price rallies.
Similar to Ethereum recently, the RSI is still high above 85, indicating overbought conditions, but this does not necessarily imply a bearish trend. It does not necessarily mean a trend reversal, it just suggests prolonged price action and the possibility of brief cooldowns.
Bulls in XRP should now look for two things: a volume increase to support a continuation above $3.60 and confirmation of the 50/100 EMA cross to keep the bullish structure in place. If both come to pass, XRP might be setting itself up for a challenge at $4 and higher — assuming that the mood of the market as a whole does not change significantly.
Vladislav Sopov
U.Today Editorial Team