XRP is on the brink of engineering a run to a new all-time high as it looks to record a historic golden cross amid the recent rally.
The market has embarked on a recovery campaign, and XRP appears to be leveraging this push better than most. For instance, XRP has gained by an impressive 16.5% over the past 24 hours, making it the biggest gainer among the top 70 assets and third biggest on the top 100 list.
XRP Eyes Golden Cross
This short-term bullish momentum has triggered a rapid spike in its short moving averages (MAs), leading to an impending golden cross on the weekly timeframe. Notably, a golden cross occurs when a shorter moving average (especially the 50-period MA) rises above a longer moving average (especially the 200-period MA).
This phenomenon indicates that the asset’s short-term momentum has flipped massively bullish, enveloping its longer-term momentum. Interestingly, the occurrence of a golden cross typically signals that the bullish push could linger, possibly leading to greater price heights.
XRP has gained 62% over the last two weeks, solidifying its bullish short-term outlook. The asset recently flipped Binance Coin (BNB) to become the fifth-largest crypto asset globally and has also reclaimed a $100 billion market cap amid the latest run.
This push has triggered a rise in the 50-week MA (orange), which now sits at $0.6020. At press time, the 50-week MA is on the verge of overcoming the 200-week MA (green) at $0.6299. If this occurs, the golden cross will have materialized, setting the stage for more explosive surge.
Notably, this weekly golden cross has only occurred once since XRP launched, particularly during the 2021 rally. The phenomenon resulted in a rally that saw XRP reclaim previous highs in early 2021, but the prevalent SEC lawsuit at the time capped higher gains.
A Possible Price Explosion
XRP’s regulatory clarity and the favorable political developments in the United States could allow it to set its sights on the 2018 peak around $3.31 once this golden cross occurs. Interestingly, XRP has now reclaimed the $1.8 region, changing hands at $1.81 at press time.
From this level, its next resistance sits at $1.88, which, if breached, would lead to $1.96, the 2021 peak. Veteran analyst Peter Brandt argued in a previous analysis that breaking above $1.96 could set the stage for an explosive run. In this case, XRP could target highs above the $2 psychological level.
Two days ago, market analyst Flowseidon shared a chart showing XRP consolidation near $1.50 after a strong rally, with higher lows and a flat resistance level forming an ascending triangle.
The price and moving averages indicated a tightening structure which highlighted declining volatility. This structure typically leads to massive breakout. Interestingly, after breaching the $1.5 yesterday, XRP has staged a breakout, now looking to clear the $1.96 level.
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