After the “golden cross” formation, will XRP holders experience a 176% rise this time. The action Ripple took against the SEC is still making news. Regardless matter the decision, XRP holders continue to support the alternative currency.XRP, Ripple’s native coin, suffered a great deal during the ongoing trial, which started in December 2020. But given the recent displays of immense power and resolve by investors, it appears as though XRP has finally found its footing.
According to reports, “Troubled” XRP displayed its first “golden cross” in 15 months, which famous analysts considered a bull market indicator.
It is a good indication of an asset’s price when its short-term moving average crosses over its long-term moving average. Golden crosses have the ability to predict significant price increases.
The 50-day and 200-day moving averages of XRP crossed each other to create a bullish golden cross pattern. At the time of publication, its Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators were also supporting the purchasers.
The golden cross has previously appeared on XRP charts a few times. It last happened on July 17, 2021, and was followed by a 176% price increase. XRP reached a high of $1.41 before reversing direction to the negative.
The most recent development has increased interest in XRP. And Ripple did not disappoint. This issue was clarified by fiatleak, a website that tracks the input and outflow of funds into cryptocurrencies. Here, Ripple distributed 100 million XRP as buyers “frantically” snatched up XRP-related goods.
Additionally, there were large inflows into cryptocurrency investment instruments that gave investors exposure to XRP. XRP-focused investment products saw $800,000 in inflows last week, according to a CoinShares report. Since the SEC lawsuit’s inception, this sum was “the largest.”
Meanwhile, the mood among traders recently has changed for the better. As a result, a recovery for XRP is anticipated in Q4.
So what is the concern?
XRP is still in a precarious position. The price of XRP is still below the $0.5 threshold as of the right moment. Additionally, XRP still has a ways to go despite Ripple’s ardent efforts to promote alliances and collaborations.
Notably, during the past month, Ripple’s daily active addresses have decreased. Hence, it was implied that Ripple network users had a low level of activity. Ripple’s velocity was another indicator that showed a decline in activity.
Therefore, before making any move, traders should exercise extreme caution.