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XRP, the seventh largest cryptocurrency by market capitalization, recently formed a golden cross on its short-term charts — a technical indicator that often signals the potential for a price rally. The market is watching closely to see if this development could lead to a significant upward movement in XRP's price.
A golden cross occurs when a short-term moving average (usually the 50-period moving average) crosses above a long-term moving average (often the 200-period moving average).
In the case of XRP, the golden cross has emerged on the four-hour chart, which means that the shorter-term momentum has overtaken the long-term.
This crossover is generally interpreted as a bullish signal, suggesting that momentum is shifting in favor of buyers and that a price increase could be on the horizon.
The XRP price trended higher in the past week as the markets broadly rallied following a jumbo Fed rate cut.
What's next for XRP's price?
XRP began to rise after rebounding sharply from lows of $0.50 on Sept. 6. Although the rise was punctuated by minor dips, XRP remained in an upward trend, reaching a high of $0.612 on Sept. 21 before declining.
At the time of writing, XRP was down 1.18% in the last 24 hours to $0.587. As it stands, the $0.61-$0.66 range has acted as a psychological barrier in recent months, and a successful breach of this level could trigger additional buying pressure, driving the price higher.
Traders are also eyeing the $0.748 mark as a critical barrier. If XRP can gather enough momentum to break past this key resistance, a significant price surge may follow, potentially taking the seventh-largest digital asset to new yearly highs.
While the golden cross is a bullish signal, it is essential to consider other factors such as overall market sentiment and broader economic trends that might significantly impact XRP's price.