Ripple’s native token, XRP immensely suffered amidst the ongoing trial that began in December 2020. But it looks like XRP has finally found its ground as holders of late have showcased massive determination and strength.
Reportedly, ‘Troubled’ XRP showcased its first “golden cross” in 15 months, which was regarded as a bull market indicator by renowned analysts.
Indeed, when an asset’s short-term moving average crosses above its long-term moving average, it’s a good signal for its price. Golden crosses are a potential indicator for major price rallies.
XRP’s 50-day moving average surpassed the asset’s 200-day moving average, forming a bullish golden cross pattern. Its Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators were also supporting the buyers, at press time.
The golden cross has appeared a few times on XRP charts in the past. Its last occurrence was on 17 July 2021, which was followed up by a 176% price rally later, with XRP topping out at $1.41 before reversing course to the downside.
The latest development has injected a fresh demand for XRP. And, Ripple didn’t fail to deliver. fiatleak, a platform to track inflow/outflow of money into cryptocurrency shed some light on this matter. Herein, Ripple shoveled 100 Million XRP as investors ‘frantically’ grabbed XRP-Oriented products.
Ripple Shovels 100 Million XRP as Investors Start Frantically Grabbing XRP-Oriented Products
XRP-Oriented Funds Experience Huge Inflows Ahead of SEC v. Ripple Outcome#XRP Lawyer Finds Good News For Ripple In SEC Claims
— fiatleak (@fiatleak) October 25, 2022
In addition to this, cryptocurrency investment products offering investors exposure to XRP saw significant inflows. As per CoinShares’ report, XRP-focused investment products saw $800,000 of inflows last week. This amount represented “the largest since the lawsuit with the SEC began.”
Meanwhile, traders’ sentiment of late has turned positive. Consequently, a rebound is expected in Q4 for XRP.
What’s the worry then?
XRP remains in a vulnerable state whatsoever. Even now, XRP remains under the $0.5 mark on the price chart. Also, despite Ripple’s enthusiastic attempts to facilitate partnerships and collaborations, XRP still has a long way to go.
Notably, Ripple’s daily active addresses have witnessed a decline over the past month. Thus, implying that users on the Ripple network were passive in terms of activity. Another metric to indicate the declining activity was Ripple’s velocity.
Traders, therefore, should be very careful before making any move.