Key facts
- XRP gained 6.93% on Tuesday, one of its sharpest single-day moves in weeks.
- XRP's 50-day and 200-day EMAs are nearing a golden cross, potentially by mid-October.
- Bitcoin's market share slipped to 59% from 64% as traders rotated into altcoins.
- The 4-hour chart golden cross for XRP, formed August 21, has seen the gap between EMAs close.
- XRP's ADX is at 35.2, indicating a strong trend.
- XRP's RSI is at 54.6, suggesting it is not overbought.
XRP experienced a significant surge of 6.93% on Tuesday, reaching an intraday high of $1.4028 and settling near $1.3863. This rally occurred as Bitcoin reclaimed the $80,000 level, signaling a potential rotation of capital into smaller tokens and boosting overall crypto market sentiment. Bitcoin's market dominance decreased from 64% to 59% during this period.
The technical indicators for XRP suggest a potential bullish trend. The gap between its 50-day and 200-day exponential moving averages (EMAs) on the daily chart has narrowed considerably, approaching a 'golden cross' formation, which occurs when the shorter-term average crosses above the longer-term one. If the current pace of gains continues, this crossover could materialize by mid-October. The Average Directional Index (ADX) for XRP stands at 35.2, indicating a strong trend, while the Relative Strength Index (RSI) is at 54.6, suggesting the asset is not yet overbought.
However, a cautionary note comes from the 4-hour chart, where a golden cross formed on August 21 but has since seen the gap between EMAs narrow, rather than widen as typically seen in a strong breakout. Experts differ on whether shorter timeframes predict longer ones, but this divergence suggests the daily golden cross is not guaranteed. The Squeeze Momentum Indicator has also been flashing 'on' for 11 consecutive bars, indicating compressed volatility that could precede a larger move.