A golden cross has appeared on the weekly chart of the XRP/BTC ratio, signaling a potential major XRP uptrend. According to CoinDesk analyst Omkar Godbole on the current date, this bullish shift in momentum suggests XRP may outperform Bitcoin. The golden cross occurs when the 50-week simple moving average crosses above the 200-week simple moving average, indicating a short-term trend outperforming the broader trend.
The crossover on XRP/BTC's weekly chart increases the likelihood of breaking out of its four-year sideways channel. This hints at a significant XRP bull run relative to Bitcoin. Since late 2020, the ratio has been range-bound due to regulatory uncertainty.
Last month, the SEC dropped its appeal against a favorable ruling for Ripple, establishing that XRP is not a security when sold to retail investors on public exchanges. This removes a significant obstacle, potentially triggering a substantial rally and driving valuations to record highs. The longer the consolidation, the more pronounced and rapid the resulting price movement is likely to be.
This article is based on our author's analysis of materials taken from the following resource: www.coindesk.com.