The price chart of the digital token XRP has recently confirmed a golden cross pattern, which forms when an asset’s relatively short-term moving average crosses above its long-term moving average.
A golden cross is generally seen as a potential indicator of a bullish trend and it is being confirmed for XRP for the first time in 15 months.
According to the analyst that brought this to the notice of the crypto community, the XRP price chart has formed a golden cross between the 50-day and 200-day moving averages.
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The analyst, who is known on Twitter as Lukasz Wydra, told traders to keep an eye on the XRP price pattern in the coming days to see the impact of the rare occurrence.
Captioning a chart as proof, Lukasz Wydra tweeted, “XRP confirms a golden cross between the 50-day and 200-day moving averages. The coming days will show what impact this will have on the price action. . In the meantime, the consolidation continues, while the RSI and MACD remain bullish.”
$XRP confirms a golden cross between the 50-day and 200-day moving averages. The coming days will show what impact this will have on the price action.
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In the meantime, the consolidation continues, while the RSI and MACD remain bullish. pic.twitter.com/XFfpQLHgfM— Lukasz Wydra (@lukasz_wydra) October 24, 2022
It’s worth noting that the last time a golden cross appeared on the XRP chart was on the 17th of July 2021. The occurrence was later followed by an over 170% price surge, bringing XRP to trade at around $1.40 before a bearish reversal.
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Explaining a golden cross, Investopedia wrote, “There are three stages to a golden cross. The first stage requires that a downtrend eventually bottoms out as selling is depleted. In the second stage, the shorter moving average forms a crossover up through the larger moving average to trigger a breakout and confirmation of trend reversal. The last stage is the continuing uptrend for the follow-through to higher prices.
As aforementioned, analysts and traders often see the golden cross as a potential signal for an upcoming meteoric price uptrend. So, this occurrence is expected to attract more buying interest, which would trigger an additional price increase.
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