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XRP just had a golden cross on the eight-hour timeframe — that is a technical formation where the 23-period moving average goes above the 200-period. The last time this exact signal popped up, between May 10 and May 14, XRP gained over 13% in just four days.
Now, the market is keeping a close eye out to see if history repeats itself.
This new crossover is coming together after a period of consolidation, where XRP held onto key short-term support levels but had a hard time building upward momentum. Still, over the past 48 hours, the price got back above the 200-day moving average and closed multiple candles above it, setting the stage for this golden cross to be confirmed.
Compared to the May move, the setup this time has more technical overhead and slightly weaker volume, but the basic structure is similar. Price action has been getting tighter around the $2.20-$2.25 range, and the moving averages have caught up to that. That might give bulls a chance to try a local breakout, especially if the trading volume starts to pick up.
Scenarios
Short-term traders will probably keep an eye on it to see if the XRP price stays above $2.25, and they will want to see higher volume too, before they are ready to say it is a setup. If the price drops below the 200-day line again in the next few sessions, the asset might start to lose strength.
Golden crosses are often used to spot potential trend shifts, especially when they show up on higher time frames. This is an eight-hour chart, not a daily one, but the last similar setup was followed by a fast move. This could be a big deal for short-term XRP traders.
There have not been any breakouts yet, but the signal is in. Now, it is just a matter of making sure that XRP follows through.
Vladislav Sopov
U.Today Editorial Team