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XRP just created a golden cross on its hourly chart, but all is not as it seems. A golden cross occurs when a short-term moving average crosses above a long-term MA and often signifies bullish momentum.
This wasn't the case for XRP's price, as momentum waned with the hourly moving averages making a downward tilt. This comes as the broader crypto market sees lackluster trading activity at the start of September, a month believed to be historically weak for markets.
Rather than XRP rising upward, the price fell, as seen on the hourly chart, to $2.80, suggesting that the signal might have been a fakeout. At the time of writing, XRP was down 1.38% in the last 24 hours to $2.80. The crypto asset has slipped to the fourth spot in crypto rankings, with a current market capitalization of $167 billion. Despite a drop across most time frames, XRP remains up 423% on a yearly basis, surpassing Bitcoin and Ethereum's percentage gains.
XRP to $2.7?
XRP's price rose sharply on Friday, nearing $2.90 as investors reacted to a weak jobs report, which bolstered bets of a potential rate cut in September. However, the rally was short-lived, with the price being rejected at this high. The significance of this move, according to crypto analyst Ali, is that it could send XRP to $2.70. "A rejection at $2.90 could send XRP back to $2.70," Ali tweeted alongside an XRP price chart.
Since its drop in late August to a low of $2.69, XRP continues to trade within a range of $2.74 and $2.887, awaiting its next move. Its next major resistance lies at $3.05 (the daily SMA 50) and $2.48 (the daily SMA 200).
In recent news, Grayscale has celebrated the first anniversary of the Grayscale XRP Trust.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team