Overall, the crypto market has not developed too well in recent days. XRP in particular suffered badly.
In fact, the third largest cryptocurrency that traded at a multi-month high a few weeks ago has fallen from a price north of $ 0.34 to just $ 0.264 today – a nearly 23% crash. This means that XRP has underperformed Bitcoin in the past few days, which posted a relatively slight 9% loss over the same period.
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Despite this dramatic underperformance, some feared as a sign of the long-term weakness of the asset, the chart of the leading old coin was showing an extremely strong sign.
Ripples XRP prints extremely strong signal
Today, NewsBTC noted that XRP was sending an extremely optimistic signal: on its daily chart against the US dollar, the 50-day simple moving average (red line) exceeded the 200-day simple moving average for the first time in the year ( green line) months, indicating that bulls are in control.
For those who don't know, this technical formation is known as the golden cross, which has traditionally been considered extremely bullish and can be considered the same for XRP. Investopedia explains this concept further:
"Since long-term indicators are more important, the golden cross shows a bull market on the horizon and is reinforced by high trading volumes."
Although a full analysis of the impact of this technical signal on XRP's price has not been performed, this author has done an analysis of the golden crosses for Bitcoin and has achieved amazing results.
This writer found These “real” golden Bitcoin crosses led to rallies of 20,500%, 6,750% and 150%, respectively. A gold cross on the BTC chart in 2015 led to an increase from around $ 300 to $ 20,000 in just a few years. Not once in this rally did the golden cross show a reversal to a death cross.
"Real" golden Bitcoin crosses led to rallies of 20,500%, 6,750% and 150%.
If the story rhymes, BTC could do very well in the coming years. pic.twitter.com/IJZ2gXl9Jf
– Nick Chong (@_Nick_Chong) February 18, 2020
Other strong signs
This is because a number of analysts have expressed other optimistic ideas about XRP.
A custom indicator known as IchiEMA printed a buy candle on the weekly cryptocurrency chart. This signal was seen two weeks before the notorious rise in altcoin at the end of 2017, in which the asset gained over 1,000% in less than a month, rising from $ 0.20 to a price above $ 3.00.
Analysis, with the XRP bottom at $ 0.17 and the subsequent rally at $ 0.34, suggests that the asset will rise 200% to 300% to $ 1.00 in the coming months.
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