Golden Cross Appears On XRP Price Chart, Factors That Could Drive A Fresh Rally
The XRP price has struggled despite scoring multiple partial victories against the United States Securities and Exchange Commission (SEC) over the last year. The initial surge was not enough to push it into the coveted $1 level. However, this has not deterred bulls, especially with bullish formations on the chart and multiple predictions that the XRP price is set to hit a new all-time high.
XRP Price Flashes Golden Cross
A pseudonymous crypto analyst who goes by @Nico369K on the X (formerly Twitter) platform has pointed out an interesting formation on the XRP price chart. This formation is known as a “Golden Cross” and is an exceptionally bullish formation on the chart of any digital asset.
Related Reading: Crypto Analyst Says XRP Is Still On Course To Rise To $150
Golden crosses usually emerged when the short-term moving average of an asset crosses over a major long-term moving average of that asset. The moving average could be from any timeframe, ranging from daily to weekly, and according to the crypto analyst, the Golden Cross has appeared on the weekly chart.
The Golden Cross, on its own, signifies long-term bullish momentum for an asset, suggesting that the XRP price could be moving toward a rally. However, it is not the only bullish thing that has appeared on the chart as the Relative Strength Index (RSI) is also bullish.
According to the crypto analyst, the RSI is currently sitting at around 44.31, which is a significant drop over the last few months. The RSI signifies if an asset is overbought or oversold, with higher values indicating overbought territory, which is bearish, and lower values indicating oversold territory, which is bullish.
Usually, RSIs of around 30 mark oversold territory, and the XRP price is still higher than this level. However, the decline in the RSI suggests that the altcoin’s price has already descended toward oversold territory and a rally could erupt due to this.
Other Factors That Could Drive A Rally
The Ripple Vs. SEC lawsuit has been the obvious culprit when it comes to why the XRP price has failed to perform like the rest of its peers over the last four years. The lawsuit, which began in 2020, has raged on for almost four years now, and in that time, the XRP price has fallen below $1 and stayed there.
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However, the lawsuit is expected to come to an end this year after Judge Analisa Torres ruled that programmatic XRP sales on secondary exchanges did not qualify as securities. As a result, Ripple is now locked in settlement talks with the regulator to determine a comfortable outcome for the parties involved.
Ripple CEO Brad Garlinghouse recently said he is confident that the case will be over soon. Once the lawsuit is over, expectations are that the XRP price will finally have the freedom to move. In this case, the XRP price could surge past $1, with some analysts predicting that the price could cross $10 by the time the rally is done.
Featured image created with Dall.E, chart from Tradingview.com
