XRP, the third largest altcoin in the market, has once again come to the fore and is now on the verge of a massive upswing mirroring the bullish rise of Bitcoin [BTC]. On the back of the recent price push, the altcoin has entered its Golden Cross.
This mark, touted as the gateway to a bull-run, was achieved by Bitcoin on April 23, when it was trading at $5,500 and in less than a month, the coin’s price rose to over $8,500.
The Golden Cross manifests when an asset’s 50-day moving average [MA] overtakes its 200-day moving average, which holds credibility among analysts as it dictates that the current average price is higher than its historical price. XRP saw its 50-day MA overtake its 200-day equivalent at 0600 UTC on 27 May.
Following Bitcoin’s bullish breakout in early April when the coin broke several resistance and psychological levels, XRP failed to join in the market upswing. Days after Bitcoin’s ascendance, XRP saw its “Death Cross” realized where the 50-day MA dips below the 200-day MA, which saw the price fall from $0.92 to $0.25, a 72.82 percent decline while the entire market was trading in the green for the better part of the month.
During the crypto-winter which persisted for most of the previous year, the “Death Cross,” where the 50-day MA dips below the 200-day MA for XRP was realized in April 2018. Since then, the price of the altcoin dropped by a whopping 72.82 percent from $0.92 to $0.25 over the next two months.
In December 2017, while Bitcoin neared the periphery of $20,000, XRP realized its first Golden Cross. The altcoin’s price rose from $0.24 to as high as $2.79, a mammoth 1062.5 percent increase in a matter of weeks, helped in no small part by BTC’s rise. It should be noted that the crypto-winter soon kicked in and the coin’s price plummeted, falling out of the Golden Cross four months later.
Only in the second quarter of this year did analysts firmly state that the crypto-winter had passed as Bitcoin rose in early April 2019. However, despite the bulls of 2019, XRP trailed in terms of market performance, and in May the cryptocurrency had declined by over 12 percent in price since the beginning of the year, while coins like Litecoin [LTC], Binance Coin [BNB] and Bitcoin Cash [BCH] saw triple digital gains.
The coin’s massive bullish push on the back of several announcements from Nasdaq, Coinbase, and several adopting banking institutions buoyed the XRP market. The third largest cryptocurrency following a massive 41 percent pump on May 14-15, recording its first set of green, upward facing candlesticks against the king coin on the XRPBTC chart.
Many analysts have pegged the Golden Cross to be an important indicator of currency performance and as the first tell-tale sign of a price rally. Given how Bitcoin surged following the same, the question remains, will the Golden Cross usher in the XRP bulls yet again?
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Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.