Golden Cross Appears On XRP Price Chart, Factors That Could Drive A Fresh Rally
The XRP price has faced challenges in recent times despite making progress in its legal battle against the SEC. Despite initial surges, it has yet to reach the $1 mark. Nevertheless, bullish formations on the XRP price chart and numerous predictions of a new all-time high have kept the bulls optimistic.
A pseudonymous crypto analyst known as @Nico369K has identified an intriguing formation on the XRP price chart. This formation, called a “Golden Cross,” is an extremely bullish sign for any digital asset. Golden crosses occur when a short-term moving average crosses over a major long-term moving average on the asset’s chart. In this case, the Golden Cross has appeared on the weekly chart.
A Golden Cross typically indicates long-term bullish momentum for an asset, suggesting that the XRP price may be headed for a rally. However, the formation isn’t the only bullish factor on the chart. The Relative Strength Index (RSI) is also indicating a bullish trend. Currently sitting at around 44.31, the RSI has experienced a significant drop over the past few months. The RSI measures whether an asset is overbought or oversold, with higher values indicating overbought territory (bearish) and lower values indicating oversold territory (bullish).
While the XRP price is still above oversold territory, the decline in the RSI suggests that the altcoin’s price has already moved in that direction, potentially setting the stage for a rally.
Aside from the positive chart formations, other factors could drive a rally in the XRP price. The ongoing Ripple vs. SEC lawsuit has played a major role in the coin’s underperformance compared to its peers. However, the lawsuit is expected to conclude this year, following Judge Analisa Torres’ ruling that programmatic XRP sales on secondary exchanges do not qualify as securities. As a result, Ripple is currently engaged in settlement talks with the SEC to reach a favorable outcome for both parties.
Ripple CEO Brad Garlinghouse expressed confidence that the case will soon be resolved. Once the lawsuit is behind them, it is anticipated that the XRP price will have the freedom to move. In such a scenario, the price could surge beyond $1, and some analysts even predict it could reach $10 by the end of the rally.
Overall, the Golden Cross formation and potential resolution of the SEC lawsuit are positive indicators for the XRP price and could fuel a fresh rally in the near future.