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While the market faces the largest correction in 2024, on XRP the focus is now on the potentially transformative "golden cross" technical formation. However, recent price activity suggests that this bullish signal may be at risk of being denied, casting uncertainty over XRP's near-term trajectory.
The golden cross, a technical event where a shorter-term moving average crosses above a longer-term one, typically indicates long-term bullish momentum. For XRP, the 50-day moving average (MA) is verging on crossing the 200-day MA, a hallmark of this bullish pattern. Yet, as the price hovers near this critical juncture, there's fear that the golden cross may not fulfill its potential.
Examining the price chart, XRP shows local support at approximately $0.58, which aligns with the 100-day MA. This support has been tested and has thus far held, providing a degree of optimism for bullish traders. However, the resistance overhead is around $0.63, where recent attempts to rally have been met with selling pressure. If the price fails to consolidate and push beyond this resistance level, the anticipated golden cross may falter.
Adding to the uncertainty, XRP's price has shown sensitivity to broader market corrections and investor sentiment. The current market dynamics, influenced by a mix of macroeconomic factors and industry-specific news, present a challenging environment for XRP's potential golden cross to manifest fully.
For XRP to sustain the golden cross, bulls must mount a successful charge past immediate resistance levels and cement price stability above these key MAs. Failure to do so may not only deny the golden cross but could also trigger a bearish pattern known as a "death cross," where the short-term MA falls below the long-term MA, signaling potential for further declines.
Alex Dovbnya
Valeria Blokhina
