XRP Forms Its First 2023 Golden Cross: Details

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XRP has formed its first MA (moving average) crossing of the year and, interestingly, it turns out to be a golden cross. The last time such an event appeared on the XRP daily chart was in October 2022.

Analysts and traders interpret the golden cross, which happens when a short-term moving average crosses above a long-term moving average, as a bullish indication. In this case, the XRP daily moving average (MA) 50 has crossed above the MA 200, thus confirming the so-called “golden cross.”

XRP rallied for most of March as positive expectations in the Ripple-SEC lawsuit built up. Ripple CEO Brad Garlinghouse stated that the Ripple-SEC lawsuit was “going to be pivotal for the whole industry” and that he expects a decision on the case this year.

The sixth largest cryptocurrency rose to highs of $0.589 on March 29 in a five-day winning streak.

The rally subsided as investors made gains; at the time of writing, XRP was down 3.54% daily in line with the recent crypto market declines at $0.49. The crypto asset is down 9.75% in the last seven days.

Another interesting pattern builds up

While the appearance of a “golden cross” might indicate a definitive uptrend, it does not mark an absolute signal and might trap buyers on the wrong side of the market. This is because the token might have already been overbought and due for correction by the time a golden cross is formed.

The October 2022 golden cross produced by XRP was invalidated by the unpleasant effects of the FTX collapse on the market. XRP dipped to lows of $0.31 on Nov. 10 as the crypto market plunged in the wake of the FTX collapse.

With this said, attention could be placed on another interesting pattern building up on the XRP daily chart: the bull flag formation.

The bull flag chart pattern is a continuation pattern that looks like a downward-sloping channel or rectangle denoted by two parallel trendlines. The initial rally has ended as profit-taking occurs, and the price forms a tight range with slightly lower lows and lower highs before bulls gain control again to push another rally.