XRP Forming Interesting Pattern on Charts; This Might Be Good News in "Short Term"
XRP has formed a golden crossover on its price chart, crypto exchange Bitrue states in its recent analysis. It wrote alongside an XRP chart:
XRP just formed a fresh Golden crossover on its 4H-chart, it may be a good indicator that XRP might have reached the bottom. Currently, the price movement is respecting the 100EMA line as support after the July-end breakout of the previous price channel.
As seen on the four-hour chart, XRP's moving average (MA) 50 crossed above the moving average (MA) 200 in late July, validating a pattern known as a "golden crossover" in price charts, which is a "short-term" positive indicator in this respect.
#BitrueTA $XRP $XRP just formed a fresh Golden crossover on its 4H-chart, it may be a good indicator that XRP might have reached the bottom. Currently the price movement is respecting 100EMA line as a support after July-end breakout of previous price channel. pic.twitter.com/PetfvVTDkT— Bitrue (@BitrueOfficial) August 8, 2022
The technical analysis indicates a breakout target price of $0.5, which represents about a 30% increase from its current price. Bitrue analysts wrote, "Breakout target price is $0.5, which is a little bit optimistic considering a lot of supply areas that need to be tested."
At the time of publication, XRP was changing hands at $0.382, up 2.90% in the last 24 hours.
Analysts and traders interpret the golden crossover, which happens when a short-term moving average crosses over a long-term moving average to the upside, as indicating "a definitive upward turn" in the market.
Will history repeat itself?
In historical context, the "golden cross" formation has been observed numerous times on XRP charts. An occurrence in August 2021 was followed by a price increase of over 80%. Similar to this, a bullish crossover of some sort that took place in February 2021 was followed by a price increase of about 400%. The same outcomes were obtained when this was repeated in October 2021. This may imply that traders may react favorably in a similar manner to the latest crossover.
However, given current macroeconomic concerns, the cryptocurrency market price action remains purely speculative. If history instead repeats, XRP may have to tackle an initial barrier at $0.41 and then $0.447 before proceeding to the $0.50 level.
Several analysts also refer to the golden cross as a "lagging indicator," suggesting that the majority of the rebound might have happened by the time the crossover occurs.
XRP, on the other hand, appears to be far from overbought, with the daily RSI hovering just above the neutral 50 mark.
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