XRP Forms First Golden Cross of 2023, But…

XRP formed its first MA (moving average) cross this year, and interestingly, it turned out to be a golden cross. The last time such an event was seen on XRP’s daily chart was in October 2022.

Source: TradingView

Analysts and traders interpret the golden cross, which occurs when a short-term moving average crosses a long-term moving average, as a bullish signal.

In this case, the daily moving average of the XRP MA 50 has surpassed the 200 MA, thus confirming a golden cross.

XRP was bullish for most of March as positive expectations for the Ripple-SEC case built.

Ripple CEO Brad Garlinghouse said the Ripple-SEC case “will be critical to the industry as a whole,” and he expects a decision on the case this year.

On March 29, the sixth-largest cryptocurrency posted a five-day rally to $0,589. The rally died down as investors took profits; at time of writing, XRP was up more than 1% on the day, trading at $0.50. However, the crypto asset is down 5.3% over the past seven days.

Another interesting pattern formed

While the appearance of a folding cross can indicate a clear uptrend, it is not an absolute bullish signal and could be a bull trap.

This is because the coin may have been overbought and due to a correction while forming a golden cross.

XRP’s October 2022 golden cross is invalidated due to the nasty effects of the FTX crash on the market. On Nov. 10, XRP fell to a low of $0.31 as the cryptocurrency market plummeted following the FTX disaster.

You might notice another interesting pattern forming on the daily chart of XRP: the bull flag.

A bull flag is a continuation pattern that looks like a downward sloping channel or a rectangle represented by two parallel trendlines.

The initial rally ended on profit-taking, with prices forming a tight range with slightly lower lows and lower highs before the bulls took control of the rally again and rose again.

board pass

According to CoinDesk

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