The price of XRP, the native token of the Ripple payments network, has shown new signs of life after a prolonged bear market. Over the last week, XRP has seen both a surge in new user adoption and a key technical indicator that could signal the start of a new bull run.

Keypoints

XRP price has formed a “golden cross” pattern on the 4-day chart, which has historically preceded major rallies of 700-1000%
Crypto analyst JD predicts an imminent breakout for XRP based on this golden cross, with a potential price target above $14
XRP saw a surge in new user sign-ups this week, with 54% growth, signaling increasing adoption
XRP’s RSI is currently at 62, below the overbought level of 70, indicating room for more upside
XRP recently broke out above its upper Bollinger Band at $0.65, showing bullish momentum

According to data from on-chain analytics firm Santiment, the number of new XRP wallets created daily spiked 54% this week. This growing user base is a bullish sign for the cryptocurrency, suggesting that investors are increasingly seeing value in Ripple’s global payments network as the company resolves its legal battles.

In addition to expanding adoption, XRP has now formed a “golden cross” pattern on its 4-day price chart. As crypto analyst JD highlighted, this key indicator has preceded XRP’s two previous massive breakouts in 2017 and 2020.

XRP Price Chart (XRP)

Specifically, when XRP’s shorter-term moving average crossed above its longer-term moving average in late 2017, its price surged over 700% in the following months before peaking in early 2018. The last golden cross in late 2020 preceded an even more dramatic 1000%+ price explosion in early 2021.

So what kind of move should XRP holders expect this time? Based on past performance following these golden crosses, JD projects that XRP could rally by 700-1000% or more. That would potentially take its price from the current $0.65 level to over $14.

However, traders should be aware that XRP has seen pullbacks both times after forming the golden cross before going on its parabolic rallies. Given current price levels, a 40-64% dip could occur before liftoff.

Nonetheless, XRP still has plenty of “rocket fuel” from a technical standpoint. Its relative strength index (RSI) is just 62, well below the 70 threshold that would indicate “overbought” conditions. The cryptocurrency also just broke out above the upper boundary of its Bollinger Bands at the $0.65 area, reflecting growing bullish momentum.

So for traders who can stomach short-term volatility, XRP’s golden cross makes a compelling case for substantial upside potential in 2024 and beyond.

If bulls can hold support around $0.59 and then break key resistance at $0.68, the path appears clear for Ripple’s native asset to challenge its all-time high at $3.30 from the 2018 bubble.

The post Golden Cross Appears! Ripple’s XRP Price Ready for Liftoff, How High Can it Go? appeared first on Blockonomi.

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Filed under: Bitcoin - @ December 8, 2023 5:17 pm