XRP Breaks Through Golden Cross Pattern, What Does This Mean for Ripple Coin?

Bittime - In early November 2024, XRP attracted the attention of traders and investors after breaking out of a pattern golden cross on the 4-hour chart. So, what is the impact on the Ripple coin? Read the explanation.

As a technical indicator which is often interpreted as a bullish signal, the occurrence of a golden cross This could give an indication that XRP price movements in the near future have the potential to increase. 

However, how much impact will this have on the price of XRP going forward, and is this a sign of the start of a stronger bullish trend? Keep following this article.

What is the Golden Cross?

Golden cross is a technical pattern that occurs when short-term price moving averages, such as moving average 50 periods, crossing upwards moving average long term, such as 200 periods. 

This pattern is often considered a signal of upward momentum. This pattern indicates that buying interest is starting to outweigh selling pressure—a factor that could push prices to higher levels.

Read also: Altseason Begins: Crypto Whales Start Trading XRP and Solana

However, this pattern only provides an idea of ​​possible short-term price movements. If on a daily or weekly chart golden cross signaling potential long-term growth, on the 4-hour chart, this pattern is more indicative of bullish sentiment developing in a relatively short time. 

Therefore, this pattern is very attractive to day traders and short-term investors looking for quick opportunities.

Challenges and Potential Risks

Although the golden cross is often considered a positive signal, its success cannot simply be guaranteed. Many factors influence whether this pattern will result in a significant price increase, such as overall market conditions, trading volume, and broader economic factors. 

If the market generally enters a bearish phase, even the pattern golden cross although it could fail to trigger a meaningful price rally.

Recently, although XRP's technical patterns show upside potential, the price of XRP itself has experienced significant fluctuations. The price of XRP even fell to a level of around $0.57 on Monday after peaking at $0.618 on November 10. 

This decline is thought to be largely due to profit taking from investors who bought at lower prices.

XRP Market Trends and Activity Recap

Last October, XRP actually faced the opposite pattern, namely death cross, which appears when moving average short term down below moving average long-term. This pattern usually indicates bearish momentum which caused the price of XRP to plunge to its lowest figure of $0.487. 

Read also: Is it possible to mine Ripple tokens ($XRP)?

Will the pattern golden cross this time bringing more positive changes to the price of XRP? Many investors are currently observing whether the price movement after this pattern is formed will continue the upward trend or whether it will only be temporary.

Key Support and Potential XRP Bullish Trend

One key factor to pay attention to is XRP's ability to maintain existing support levels. If XRP is able to stay above these support levels, this could confirm the bullish sentiment indicated by the pattern golden cross will continue. 

Conversely, if XRP fails to maintain support, then this positive sentiment could reverse, and the price of XRP may come under pressure again.

Currently, although XRP is showing signs of recovery, with the price having risen 78.3% in the past week, investors should still be cautious. 

Pattern success golden cross this remains highly dependent on overall market conditions and how XRP can handle selling pressure and capitalize on positive trading volume.

Read also: Ripple (XRP) Price Prediction According to Crypto Analysts, Rise to $3?

Conclusion

The golden cross formed on the 4-hour chart of XRP indicates a potential bullish movement in the short term. However, this pattern only provides positive indications if it is supported by external factors that support an uptrend, such as stable trading volume and bullish market sentiment. 

Therefore, although this pattern provides hope for XRP investors, there are still many factors to consider before concluding that the XRP price will continue its upward trajectory.

Is the pattern golden cross will this be a signal of a long-lasting bullish trend? Let's wait, but for investors who follow XRP movements, maintaining vigilance and continuing to monitor support levels is an important step.

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