Technical insights adapted from CoinDesk’s crypto markets analysis.
XRP, the cryptocurrency aimed at revolutionizing cross-border payments, is showing strong bullish signals against Bitcoin following a technical crossover that typically marks the start of a significant upward trend. On the weekly chart, XRP’s performance relative to BTC has triggered its first-ever golden cross, suggesting that momentum is decisively shifting in XRP’s favor.
A golden cross develops when the 50-week simple moving average (SMA) moves above the 200-week SMA. This technical pattern generally signifies a transition from a bearish or neutral market to a bullish phase, giving investors a reason to believe that XRP may be entering a major upward cycle versus Bitcoin.
This crossover on the XRP/BTC chart is viewed as a significant turning point. Not only does it improve the outlook for XRP against the leading cryptocurrency, but it also increases the chances of a breakout from the extended consolidation phase that has restrained XRP’s performance for nearly four years.
Since late 2020, XRP has been trading in a tight horizontal channel relative to BTC, a period marked by intense regulatory scrutiny. The backdrop of ongoing litigation with the U.S. Securities and Exchange Commission (SEC) has been one of the main reasons behind XRP’s underperformance despite the broader market’s bullish momentum.
The crossover brings fresh optimism in light of improving macro conditions for XRP. In April, the SEC officially decided to withdraw its appeal of a court decision that favored Ripple, the company behind XRP. The court ruling reiterated that XRP should not be considered a security when sold on public exchanges to retail users. This legal victory removes a significant barrier to XRP’s market performance.
The lifting of regulatory shadows has opened the doors for renewed investor confidence. The golden cross not only marks a psychological shift but also aligns with growing technical strength. Analysts suggest that such consolidation phases often serve as build-up periods. The longer the range-bound movement, the greater the intensity once the breakout happens.
Historically, markets that have experienced extended periods of low volatility often surge when the technical and macroeconomic conditions align. The golden cross is considered a precursor to this kind of explosive movement. With the legal clarity now in place, XRP is positioned to capitalize on the favorable chart patterns and possibly make significant gains against Bitcoin in the coming quarters.
Market participants are closely monitoring XRP/BTC for confirmation of a breakout from its longstanding wedge pattern. A confirmed breakout would likely shift investor sentiment broadly in XRP’s favor, fueling inflows and possibly triggering a bullish feedback loop.
Related: Expert Advice: Sell XRP If You’re Confused
While traders should still consider broader crypto market dynamics and Bitcoin’s movements, XRP appears ready to unlock new potential now that the regulatory uncertainties are behind it. If the golden cross succeeds in influencing investor psychology, it might just be the beginning of a new chapter in XRP’s market story—especially in its rivalry against Bitcoin.
