The XRP price has surged to fresh multi-month highs following a pivotal legal victory in the long-standing Ripple versus Securities and Exchange Commission (SEC) case, where XRP was ruled not to be a security. While the digital asset has pulled back in recent weeks, key technical indicators are flashing bullish signals—most notably, a rare "golden cross" formation, only the third in XRP’s history. This event has reignited speculation about a potential new bull run for the cryptocurrency.
What Is a Golden Cross in Crypto?
A golden cross is a significant technical pattern that occurs when a short-term moving average—typically the 50-day—crosses above a long-term moving average, such as the 200-day. This crossover is widely interpreted by traders as a strong bullish signal, often marking the beginning of a sustained upward trend.
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In a notable August 5 observation, cryptocurrency analyst MackAttackXRP highlighted on the X platform (formerly Twitter) that XRP had just formed this rare pattern:
“XRP prints a rare Gold Cross. This has only been seen twice before in XRP’s history. The appearance of this third Golden Cross could well lead to a prolonged Bull Market that is unprecedented.”
Historically, each prior golden cross in XRP’s price chart has been followed by substantial rallies, fueling optimism among investors about what may come next.
Historical Precedents: What Happened After Previous Golden Crosses?
Looking back at XRP’s market behavior, the two previous golden cross events were strong precursors to major price increases:
- First Golden Cross (2017): Occurred during the height of the crypto bull market, preceding XRP’s meteoric rise from under $0.25 to nearly $3 by year-end.
- Second Golden Cross (2020): Appeared amid growing institutional interest and Ripple’s expanding global payment network, leading to a rally from around $0.18 to over $0.80 within months.
These patterns suggest that when fundamental developments align with technical strength—such as regulatory clarity and rising adoption—the golden cross can act as a powerful catalyst.
Today, similar conditions may be emerging. The SEC’s partial loss in court provided critical regulatory clarity, reinforcing confidence among developers, exchanges, and financial institutions using or considering XRP for cross-border payments.
Current Market Sentiment and Price Action
Despite the promising technical setup, XRP’s short-term price action has turned bearish. At the time of writing, XRP trades at $0.63, down over 5% in the past 24 hours and 11% on the weekly chart. The recent correction wiped out approximately $2 billion in market capitalization in a single day.
Technical analysis platforms like TradingView reflect this shift:
- Moving Averages: Indicate a “sell” signal with 8 out of 10 indicators pointing downward.
- Oscillators: Remain neutral (8 out of 14), suggesting the market is neither overbought nor oversold.
- Short-Term Outlook: Bearish momentum persists, with resistance near $0.70 and support potentially forming around $0.58.
There is growing concern that without immediate bullish momentum, XRP could retest the $0.50 level—a psychologically important threshold for many investors.
Fundamental Drivers Supporting Long-Term Growth
While short-term volatility dominates headlines, long-term fundamentals remain strong for XRP:
- Regulatory Clarity: The court ruling that XRP is not a security for retail sales removes a major overhang that has weighed on the asset for years.
- Institutional Adoption: Ripple continues to expand partnerships with banks and payment providers globally, leveraging XRP for fast, low-cost international settlements.
- On-Chain Activity: Increased usage of RippleNet and growing transaction volume on the XRP Ledger signal sustained utility beyond speculation.
These factors contribute to a compelling narrative: even if price corrections occur, the underlying value proposition of XRP strengthens over time.
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Will the Third Golden Cross Trigger a Major Rally?
The convergence of technical and fundamental catalysts raises an important question: Could this third golden cross mark the beginning of an extended bull phase?
Market analysts remain divided:
- Bullish Camp: Argues that regulatory clarity removes uncertainty, enabling broader adoption and exchange relistings—key drivers for price appreciation.
- Cautious View: Warns that macroeconomic headwinds, including high interest rates and risk-off investor sentiment, could delay any meaningful recovery.
However, history suggests that golden crosses in XRP tend to precede strong rallies—especially when supported by positive news cycles.
Frequently Asked Questions (FAQ)
Q: What is a golden cross in cryptocurrency trading?
A: A golden cross occurs when a short-term moving average (like the 50-day) crosses above a long-term moving average (like the 200-day), signaling potential bullish momentum and often marking the start of an uptrend.
Q: How many times has XRP formed a golden cross before?
A: This is the third recorded instance of a golden cross in XRP’s history. The prior two were followed by significant price increases, making this event particularly noteworthy.
Q: Did the SEC ruling classify XRP as a security?
A: No. A U.S. court ruled that XRP is not a security when sold to retail investors, providing crucial regulatory clarity. However, institutional sales are still under scrutiny.
Q: What is the next key support level for XRP?
A: Analysts identify $0.58 as a critical support zone. If maintained, it could set the stage for a rebound toward $0.80 or higher.
Q: Can XRP reach $1 or higher again?
A: While short-term targets are more conservative, long-term projections suggest $1 is achievable if adoption grows and market conditions improve.
Q: Where can I track XRP price movements and technical indicators?
A: You can monitor live charts, moving averages, and market sentiment using advanced trading platforms with real-time data feeds.
Final Thoughts: A Pivotal Moment for XRP
XRP stands at a crossroads. A rare technical formation—the third-ever golden cross—coincides with improved regulatory standing and growing institutional interest. While short-term bearish pressure remains, these deeper trends suggest that the foundation for a major rally may already be forming.
Investors should watch key levels closely:
- Support: $0.58–$0.50
- Resistance: $0.70–$0.80
- Long-Term Target: $1.00+
Volatility is inherent in crypto markets, but strategic investors who understand both technical signals and fundamental drivers may find opportunities even in uncertain times.
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Disclaimer: The content provided is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments are speculative and involve significant risk. Always conduct your own research before making any investment decisions.