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On its daily chart, XRP is getting closer to a crucial technical point as the eagerly awaited mini-golden cross formation develops. XRP is currently trading at about $2.29, just above important moving averages such as the 100 EMA and 50 EMA. A classic signal that usually gives the market new bullish momentum is the approaching crossing of these two moving averages over one another.
After weeks of consolidation, the price action of XRP shows that it is forming a tightening triangle pattern. In recent sessions, the asset has maintained a relatively narrow range between $2.25 and $2.40, and the volume has decreased, indicating that volatility is building toward a possible breakout. Perhaps the mini-golden cross is the impetus that XRP bulls have been anticipating.
A larger trend reversal is typically preceded by a mini-golden cross, in which the 50 EMA crosses above the 100 EMA. In this instance, if market sentiment shifts in the near future, XRP may break out of its current range and reach $2.60 or even $2.80. But be aware that there are headwinds.
In the $2.40-$2.50 range, XRP has frequently battled overhead resistance; if it is unable to break above this range, price action may be trapped in its current triangle. There is not much momentum either way, as the RSI is hovering just above 50, but this could quickly change if the golden cross appears and draws in traders looking for breakouts.
A strong safety net for any potential dips is provided by the 200 EMA, which is still well below current price levels. A promising technical configuration that might bring in a fresh round of volatility and perhaps spark a longer-lasting rally is the mini-golden cross on XRP's chart. The upward move that many have been waiting for on XRP could finally occur if buyers intervene and force a breakout above the $2.40-$2.50 zone.
Vladislav Sopov
U.Today Editorial Team