The Golden Cross technical pattern on the XRP chart has drawn the interest of several traders and investors lately. Although XRP has shown this bullish signal previously this year, the big issue on everyone’s mind is whether it will be able to propel XRP to new highs in the near future.
If you’re not acquainted, a Golden Cross happens when a 200-day moving average crosses over a shorter-term moving average, such the 50-day moving average. Usually, this crossover portends a possible bullish breakout and an upward trend in the asset’s price.
Its prior appearance on the XRP chart earlier this year, nevertheless, invites us to question its efficacy. Even while there was some good price movement for XRP after the Golden Cross, it was not able to maintain a long-term advance, particularly in comparison to market leaders like Ethereum and Bitcoin. Significant price increases have occurred in the last several weeks for both of these dominant cryptocurrencies, much surpassing XRP.
Is the Golden Cross still applicable to XRP, then? The Golden Cross, while typically positive, does not ensure a protracted ascent for XRP, if historical performance is any indication. The overall state of the market, fundamentals, and investor mood all have a significant impact on how the cryptocurrency will develop.
It is noteworthy that one of the most volatile cryptocurrencies has long been thought to be XRP. It frequently deviates from market expectations in terms of pricing. Even yet, it hasn’t recently matched the remarkable performance of assets like Ethereum or Bitcoin. Many investors are baffled by this difference, especially in light of the overall optimistic attitude in the larger cryptocurrency market.
However, depending just on the Golden Cross as a technical indicator may not give a whole picture, even though it might offer a bullish view for XRP.
