All eyes are on XRP as the cryptocurrency teeters on the edge of a potential market-moving event. The digital asset, currently the sixth-largest by market capitalization, is experiencing a critical juncture, with its 50-hour and 200-hour Simple Moving Averages (SMAs) converging on the hourly chart.
This convergence is a classic technical indicator that often precedes a significant price movement. A “golden cross” occurs when the shorter-term SMA crosses above the longer-term SMA, typically signaling a bullish trend. Conversely, a “death cross” happens when the short-term SMA falls below the long-term SMA, often indicating a bearish trend. With XRP’s SMAs nearing a crossover, anticipation is mounting among traders and investors.
Adding to the intrigue, XRP recently showcased a golden cross on its four-hour chart, fueling speculation that a similar bullish outcome could unfold on the hourly timeframe. However, the cryptocurrency has been consolidating within a range since its July 17 peak, with support anchored at $0.542, coinciding with the daily SMA 200.
At press time, XRP was trading at $0.6086, up 1.07% in the past 24 hours. A breach above $0.61 could ignite a bullish rally towards $0.64, potentially kickstarting a fresh uptrend to $0.74. However, resistance at the $0.74 level might cap gains.
On the flip side, a breakdown below the daily moving averages could trigger a bearish descent towards the $0.40 support level. The decisive move for XRP is likely to hinge on a breakout above $0.64 or a breakdown below $0.54.
Also Read: $1.5 Billion XRP Tsunami: Should You Buy Now?
While the hourly chart is the current focal point, it’s essential to consider the broader picture. The daily SMA 50 is already tilting upwards, suggesting a potential bullish bias in the longer term. However, a definitive golden or death cross on the daily chart might still be weeks or even months away.
As the crypto market remains volatile, traders and investors are closely monitoring XRP’s price action and technical indicators for clues about its next major move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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