The price of XRP — the fifth largest cryptocurrency by market capitalization — has printed a bullish “golden cross” pattern on its daily price chart, sparking a wave of social media buzz and optimism among crypto traders.
XRP is currently trading at $0.6848 after seeing a 3.8% price decrease over the last 24 hours amid a broader market slump. However, the token is still up 14% over the last seven days.
According to data from crypto analytics firm Santiment, XRP has topped the trending tokens chart with over 58% positive sentiment, 24% negative and the rest neutral.
Golden cross pattern forms when a short-term moving average crosses above a longer-term moving average, signaling the potential for a sustained price uptrend. XRP’s 50-day moving average recently crossed above its 200-day moving average, marking a rare second golden cross this year after a similar pattern formed in April.
Historically, golden crosses for XRP have often marked major or intermediate price bottoms, as was the case last month when XRP bounced back after printing a “death cross” in late September.
Now, traders are betting the latest golden cross may attract further buying pressure and propel XRP’s price higher. However, such patterns do not guarantee future price increases, as overbought conditions can still lead to market corrections after the crossover event.
While more upside may be in store, traders are urged to exercise caution, as golden crosses do not always pan out as hoped. Still, the mood among XRP investors seems cautiously optimistic thanks to the major technical signal.