The native token of the XRP Ledger, $XRP, has recently formed a bullish ‘golden cross’ pattern, which is formed when an asset’s short-term moving average crosses above its long-term moving average. Golden crosses are seen as a potential indicator for major price rallies.
Analysts on social media have pointed out that XRP’s 50-day moving average has recently surpassed the asset’s 200-day moving average, forming a bullish golden cross pattern while its Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators remain bullish.
According to Investopedia, there are three stages to a golden cross, with the first one requiring a downtrend to eventually bottom out as selling is depleted. The second stage comes after the shorter moving average “forms a crossover up through the larger moving average to trigger a breakout and confirmation of trend reversal. “ A third stage occurs with the continuation to an uptrend.
XRP’s golden cross pattern was formed at a time in which XRP-focused investment products saw $800,000 of inflows last week, which are relatively small compared to BTC’s $4.6 million in inflows over the same period, but represent “the largest since the lawsuit with the SEC began.”
The price of XRP soared last month after reports revealed that both Ripple and the SEC were looking for a ruling in their long-running legal battle through a so-called summary judgment.
The filings suggest neither party wants the legal action to continue to a full trial. The SEC sued Ripple and two of its executives in 2020, alleging they sold unregistered securities when they issued $1.3 billion worth of XRP tokens. Ripple denies XRP is a security.
As reported, a panel of cryptocurrency experts has predicted that the price of $XRP could surge to $3.81 by the end of 2025 if Ripple wins its legal battle against the SEC. The experts, however, predicted the cryptocurrency would trade at just $0.98 if Ripple loses.
The cryptocurrency community is notably expecting XRP to drop by the end of this year to trade at around $0.40. The figure marks a sharp decline from XRP’s current levels and notably suggests that while the token has been rallying, the community sees it as a short-lived rally that will end up being undone through a sell-off.
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