A popular cryptocurrency analyst has recently suggested that a “parabolic move is imminent” for the native token of the XRP Ledger, XRP, over a rare bullish pattern that was formed on the cryptocurrency’s price charts.
In a post on the microblogging platform X (formerly known as Twitter), popular analyst JD told his over 30,000 followers on the platform to ignore new developments and “pay attention to charts” as a golden cross “still remains” on it and could lead to a parabolic move even “if we have a nice retracement.”
A golden cross is a bullish signal that occurs when a short-term moving average crosses above a long-term moving average, signifying a shift in momentum from sellers to buyers.
According to Investopedia, there are three stages to a golden cross, with the first one requiring a downtrend to eventually bottom out as selling is depleted. The second stage comes after the shorter moving average “forms a crossover up through the larger moving average to trigger a breakout and confirmation of trend reversal. “ A third stage occurs with the continuation to an uptrend.
XRP’s golden cross was formed earlier this year, shortly after the cryptocurrency saw its market capitalization drop by nearly $10 billion from its peak this year, which was seen shortly after a federal judge ruled the cryptocurrency isn’t necessarily a security.
According to available market data, the market capitalization of XRP jumped to $44.3 billion shortly after a federal judge in New York determined that the XRP token “is not necessarily a security on its face,” but has since dropped to $33.9 billion.
The ruling came after the U.S. Securities and Exchange Commission (SEC) sued Ripple back in 2020 for alleged violation of U.S. securities laws, arguing that the firm sold XRP without prior registration with the agency.
Notably, the lawsuit saw former Goldman Sachs executive Raoul Pal bet on the cryptocurrency saying he spotted the “opportunity of a lifetime” after the price of XRP plunged as a result.
Featured image via Pixabay.
