XRP, Golden Cross Completed...Price Reverses to 'Decline'

▲ XRP/ChatGPT generated image

A golden cross, signaling a bullish reversal, has finally been completed on XRP's daily chart. However, the price is showing an unusual trend of lowering its lows and reversing downwards.

U.Today reported on September 29 (local time) that the 50-day moving average on XRP's daily chart crossed above the 200-day moving average near $1.37, forming a golden cross. This is the result of breaking the downtrend that saw prices fall from over $1.50 to approximately $1.00 from May to mid-August, followed by a surge in August accompanied by massive trading volume. Consequently, the 200-day moving average, which had acted as resistance, turned into support, and in September, after retesting the $1.28 to $1.30 range, it surged to a local high near $1.66.

However, despite the shift in market structure, recent price movements are causing concern. While the golden cross is a typical lagging indicator, XRP failed to maintain the $1.60 level, forming progressively lower highs at $1.66, $1.63, and $1.58. With the continuous appearance of daily bearish candles, the price has fallen back to $1.50, and the trading volume seen in recent rebound attempts has significantly decreased compared to the August surge.

In the process of cooling down from the overheated zone, auxiliary indicators are also showing a downward curve. The Relative Strength Index (RSI) has cooled down from the overbought zone to around the 58 level, and there is a possibility of further declines until it reaches the oversold zone. Analysis suggests that despite long-term moving averages turning positive, short-term momentum has clearly entered negative territory.

The immediate short-term support is currently located near the rising $1.44. Below that, the key defense line is the $1.37 area, where the 50-day and 200-day moving averages converge. If the daily candle closes below $1.37, the golden cross momentum will be severely damaged, increasing the risk of a retreat to the $1.30 area. Conversely, to regain upward momentum, XRP must first recover the $1.60 level and then break through the resistance zone between $1.66 and $1.70.

Although a golden cross, signaling a shift in the long-term trend from bearish to bullish, has appeared, the short-term price path is still under downward pressure. Market attention is focused on whether XRP can stop its trend of lower highs and defend the critical support zone at $1.37.

[Key Article Summary]

-A golden cross formed on XRP's daily chart as the 50-day moving average broke above the 200-day moving average near $1.37.

-However, after failing to hold $1.60, highs lowered to $1.58, and with decreasing trading volume, it fell to $1.50.

-The defense of the $1.37 support level, where the 50-day and 200-day moving averages meet, following $1.44, is considered a critical turning point to halt the short-term decline.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*