XRP, the cryptocurrency associated with blockchain firm Ripple, could potentially achieve a new all-time high if it repeats a technical chart pattern known as a "golden cross," according to an analysis by cryptocurrency influencer, CoinsKid.
The last time the cryptocurrency saw a "golden cross" in its monthly 10 and 20 Exponential Moving Average (EMA), it rallied over 720%. With XRP currently trading at $0.48, a similar rally would result in a new all-time high, surpassing the token's previous peak.
A "golden cross" is a bullish signal in technical analysis that occurs when a shorter-term moving average crosses above a longer-term moving average, indicating potential for a significant price increase. In this specific scenario, a golden cross is identified when XRP's 10-month EMA, a measure of its average price over the past 10 months, exceeds its 20-month EMA.
This kind of technical indicator often encourages investors to consider a buy position, as it may be a sign that the asset's value could experience a surge.
Coincidentally, this potential golden cross isn't the only bullish sign for XRP. Ripple is currently engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC).
If Ripple wins the lawsuit this year, it could trigger a massive price surge for XRP, as it would remove a significant hurdle that has been limiting its adoption and price performance.
With the possible golden cross in sight and a potentially positive outcome in its SEC lawsuit, XRP's price might skyrocket to previously unexplored heights.
CoinsKid suggests a minimum target of $9 if the all-time high is breached. The cryptocurrency is currently ranked 6th by market cap. Although it is difficult to predict the outcome of these events with certainty, they undeniably offer potential for considerable growth in XRP's future.