The value of XRP soared to new multi-month highs after the token received a significant boost from the Ripple and the Securities and Exchange Commission (SEC) case after being declared not a security. Although the token has experienced a partial correction in recent weeks, XRP’s technical indicators are showing promising bullish signs.
In this line, cryptocurrency analyst by the pseudonym MackAttackXRP, in an August 5 post on the X platform (formerly Twitter), made a significant observation, pointing out that XRP had formed a rare golden cross, the third one in the asset’s history.
“XRP prints a rare Gold Cross. This has only been seen twice before with XRP in History. The appearance of this third Golden Cross could well lead to a prolonged Bull Market that is unprecedented,” he said.
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Notably, this technical pattern occurs when a short-term moving average crosses above a long-term moving average, indicating a potential shift from bearish to bullish sentiment.
Impact of golden cross on XRP’s price
The occurrence of a golden cross is often regarded as a strong technical signal for a potential prolonged bullish trend in a cryptocurrency’s price. The previous instances of golden crosses in XRP’s history were followed by substantial price rallies.
Indeed, the prevailing bullish sentiment surrounding XRP has been partly influenced by the newfound regulatory clarity. While there is speculation that the SEC might appeal the matter, the recent court ruling brought much-needed relief to the XRP community and investors. It is worth noting that several players involved in the case have dismissed the notion of an appeal being a setback for XRP, arguing that it might take a lot of time.
According to a Finbold report, the initial hype surrounding the SEC case win has been fading, which will likely significantly impact the token’s valuations. Consequently, there is speculation that the asset might find support around the $0.058 level before rallying again.
In the short term, XRP’s price movement has turned bearish, resulting in a value wipeout of $2 billion. There are concerns that the token might experience a decline back to the $0.5 position, and it has been struggling to maintain levels above $0.7.
XRP price analysis
By press time, XRP was valued at $0.63, experiencing daily losses of over 5%. On the weekly chart, XRP has recorded a decline of 11%.
By press time, XRP was valued at $0.63, experiencing daily losses of over 5%. On the weekly chart, XRP has recorded a decline of 11%. A review of the asset’s technical analysis aligns with the bearish sentiment. A summary of the one-day gauges, as retrieved from TradingView, indicates a ‘sell’ sentiment at 10, which aligns with the moving averages at 8. Oscillators remain ‘neutral’ at 8.
Despite the current bearish trend, there are optimistic projections for XRP’s future, as it is believed that the positive impact of the XRP case and its adoption by financial institutions could lead to further price increases.
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