In a notable technical achievement, XRP has reached a golden cross on its four-hour charts.
What is a Golden Cross?
A golden cross, often seen as a bullish signal, occurs when a short-term moving average, such as the 50-period, crosses a long-term one like the 200-period. It is viewed as an indicator of short-term price movement, suggesting bullish sentiment might be coming. However, golden crosses are not always accurate and their success often relies on other factors such as broader market trends, trading volume, and macroeconomic conditions.
XRP Price Drop and Its Implications
Despite the golden cross pattern, XRP's price fell around 5% over the last 24 hours, raising questions about this signal's impact on bullish reversals. XRP hit a low of $0.487 after producing a death cross on its four-hour chart at the start of October. The market will be acutely observing XRP's performance to determine if the newly formed golden cross can lead to a sustained price increase.
Market Watches XRP Movements
Despite the golden cross, XRP has dropped by 2.81% to $0.582 at the time of writing. After reaching a high of $0.618 on Sunday, bulls failed to sustain the gain, and the price plummeted to $0.57 during today's trading session. Some investors might be locking in profits after recent hikes, resulting in short-term downward pressure on the price amid positive technical indicators. In the days ahead, XRP's ability to hold above critical support levels might demonstrate the golden cross's strength as a bullish signal.
The market will keenly observe XRP's performance to see if the newly formed golden cross leads to a sustained price increase.
