Ripple’s XRP Risks Plunge after Making a Weird Golden Cross

Ripple’s native token XRP triggered a bullish crossover signal on Wednesday that many traders perceived as an opportunity to score short-term gains.

The chart pattern, known as Golden Cross, typically appears when a short-term moving average jumps above the longer-term moving average. Many technical analysts use the crossover as a sign to place new bullish positions. That allows the underlying asset’s price to move upward.

But that was not the case with XRP. The third-largest cryptocurrency fell below both its crucial moving averages right after it formed the Golden Cross – by up to 11.20 percent below the said crossover. The irrational move downhill showed traders’ lack of focus on 50- and 200-daily MA as their support targets; it was a freefall.

XRP/USD eyes more losses below Golden Cross | Source: TradingView.com

Joe Saz, the market analyst at BlockTV, said XRP’s move below its Golden Cross has more to do with external narratives than technical data. He particularly…