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In a noteworthy technical milestone, XRP has achieved a golden cross — this time on its four-hour charts.
A golden cross, often viewed as a bullish signal, happens when a short-term moving average, such as the 50-period moving average, crosses above a long-term moving average, such as the 200-period moving average.
A golden cross, especially on a four-hour chart, is viewed as an indicator of short-term price movement, suggesting that bullish sentiment may be on the horizon. However, golden crosses are not always foolproof, and their success often depends on other factors, such as broader market trends, trading volume and macroeconomic conditions.
Amid this technical formation, XRP's price has fallen by around 5% in the last 24 hours, raising the question of whether this signal may still drive a bullish reversal.
Tomiwabold OlajideXRP produced a death cross on its four-hour chart at the start of October, and the price fell to a low of $0.487 weeks later. The market will be keenly monitoring XRP's performance to determine if the newly formed golden cross can lead to sustained price gain.
XRP price drop, cause for concern?
Despite the golden cross pattern, the price of XRP has fallen by roughly 5% in the last 24 hours. At the time of writing, XRP was down 2.81% daily to $0.582.
XRP reached a high of $0.618 on Sunday, but bulls were unable to sustain the gain, and the price plummeted to a low of $0.57 in today's trading session.
Some investors may be locking in profits after recent increases, particularly those who purchased XRP at a lower price. Such profit-taking can lead to short-term downward pressure on the price, despite positive technical indicators.
In the coming days, XRP’s ability to hold above critical support levels might be essential. If it maintains a solid base despite the price drop, it could indicate the golden cross's strength as a bullish signal.
Godfrey Benjamin
Dan Burgin
U.Today Editorial Team
Vladislav Sopov