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XRP has created a new golden cross, albeit on short-term time frames, reflecting recent buying pressure in the crypto market.
A golden cross, which occurs when a short-term moving average such as the MA 50 crosses over a long-term MA, has appeared on XRP's four-hour chart, indicating short-term buying pressure.
The crypto market rose in the week as investors weighed the possibility of a potential rate cut at the upcoming Fed meeting on the 16th and 17th of this month.
XRP also rose following positive triggers, including demand for XRP products and ETF optimism. In the past week, 3iQ, issuer of Canada's XRP ETF XRPQ, reported a major milestone. XRPQ surpassed CAD 150 million for the first time in its AUM, making it the largest among its peers.
The potential launch of Rex Osprey crypto ETF funds, which includes an XRP product, also spurred positive ETF expectations in the market.
What to watch now?
The emergence of a golden cross on the four-hour chart comes weeks after a bearish death cross in mid-August, following which XRP fell to a low of $2.69 on Sept. 1.
After confirming a double bottom near this low, XRP began to rise, reaching a high of $3.187 on Saturday before it retreated.
At the time of writing, XRP was down 1.57% in the last 24 hours to $3.08 as traders took recent profits, but up 8.93% weekly.
It will be watched if the current price drop is temporary profit-taking in the market. If XRP sustains its positive momentum, major targets for its price remain at $3.38 and $3.66 ahead of the $4 mark.
On the other hand, XRP might see a brief drop or consolidation before its next move. In this scenario, bulls would seek to flip the daily SMA 50 barrier at $3 into support to cushion price drops.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team