Crypto analyst Ali Martinez presented a chart indicating the MVRV ratio for XRP has crossed above the 200-day moving average, a configuration known as a golden cross.
The Golden Cross and Its Significance
The MVRV ratio measures the relationship between market cap and realized cap, providing insight into profitability for holders. A golden cross above the 200-day average is often seen by traders as an indicator of a potential bullish trend.
Historical Context and Price Projections
The report notes that a similar golden cross in late November 2024 preceded a rally of approximately 630%, reaching a multi-year peak of $3.39. A similar signal was observed in July, followed by a 54% rise. If XRP replicates these movements, it could climb to around $24.23.
Does XRP Aim for a New All-time High?
The golden cross signal could attract attention from both short-term and long-term investors. For short-term participants, this could be a tactical signal, while long-term investors may see it as a sign of strengthening bullish momentum. Regulatory news regarding Ripple and the SEC has also contributed positively to market sentiment.
Current analyses indicate potential growth for XRP based on historical movements, but it is essential to maintain prudent risk management strategies.
