While the market faces the biggest correction in 2024, in 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 negated, leading to uncertainty over XRP’s near-term trajectory.
While the market faces the biggest correction in 2024, in 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 negated, leading to uncertainty over XRP’s near-term trajectory.
The golden cross, a technical event in which a short-term moving average crosses above a long-term one, typically indicates long-term bullish momentum. For XRP, the 50-day moving average (MA) is about to cross the 200-day MA, a hallmark of this bullish pattern. However, as the price approaches this critical juncture, there are fears that the golden cross will not reach its potential.
Examining the price chart, XRP is showing local support around $0.58, which lines up with the 100-day MA. This support has been tested and has so far held, providing some degree of optimism to bullish traders. However, overhead resistance is around $0.63, where recent recovery attempts have run into selling pressure. If the price fails to consolidate and overcome this resistance level, the anticipated golden cross may falter.
Adding to the uncertainty, the XRP price has shown sensitivity to broader market corrections and investor sentiment. Current market dynamics, influenced by a combination of macroeconomic factors and industry-specific news, present a challenging environment for XRP’s potential golden cross to fully manifest.
For XRP to sustain the golden cross, bulls must mount a successful charge beyond the immediate resistance levels and consolidate price stability above these key MAs. Failure to do so could not only negate 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, indicating potential for new falls.
