XRP News Today: XRP's Golden Cross Spark Traders' Debate: Bullish Signal or Bearish Trap?

An XRP hourly golden cross, often interpreted as a bullish signal in technical trading, may be misleading as the price of XRP has recently dropped to $2.80 amid broader market uncertainty. Despite the occurrence of this rare technical event, several indicators suggest a continuation of the downtrend, with price projections pointing toward a potential decline to $2.70 or lower in the short term. The 50-day and 200-day moving average crossover, known as a golden cross, has historically correlated with upward price movements in XRP, but analysts caution that it does not guarantee future outcomes [1].

Recent on-chain data reflects declining activity in the XRP ecosystem, with the number of active addresses dropping to approximately 19,250 from over 50,000 in mid-July. This trend indicates reduced investor engagement and increased bearish pressure. Additionally, open interest for XRP futures has fallen to $7.7 billion from $10.94 billion over the same period, signaling a waning conviction among traders [2].

Price action on XRP's daily chart has formed a descending triangle pattern, characterized by a flat support level at $2.70 and a downward-sloping resistance line. If the price breaks below this support, it could fall to as low as $2.08 in the coming weeks. Traders and analysts are closely monitoring this level, as it serves as a critical barrier that could either halt the decline or accelerate it [2].

Despite the bearish outlook, there is a technical argument for a potential rebound if XRP manages to hold above $2.70. The price could rally to $3.09, aligning with the 50-day simple moving average and a key Fibonacci retracement level. A successful breakout from the descending triangle would confirm bullish momentum and open the door for a rally toward $3.70 [2]. However, if the support is breached, the next likely price target would be $2.08, a 25% drop from the current price.

In a broader context, XRP has shown signs of a multi-year double bottom pattern, with the first bottom forming in 2018 and the second in 2022. Analysts such as EGRAG argue that XRP could eventually break out of this pattern and target higher price levels, potentially reaching $22 to $27 if it successfully moves beyond its current price range. The validation of this pattern occurred when XRP crossed above $2 in December 2024, setting the stage for further upside [4]. Nonetheless, immediate price action remains constrained in a parallel channel between $2 and $3.6, and a breakout from this range is necessary to confirm a long-term bullish case.

The market environment for XRP continues to be influenced by broader crypto trends and regulatory developments. Recent discussions around a potential XRP ETF in the U.S. have generated optimism, though it remains to be seen whether institutional adoption will be sufficient to reverse the current downtrend [7]. Meanwhile, Ethereum has maintained its position as a market leader, with price predictions suggesting a potential retest of $4,250 before moving toward $5,000 in the coming months [6].

As XRP’s price consolidates near key support levels, traders are advised to employ cautious strategies and consider multiple indicators beyond just moving average crossovers. The current market sentiment, combined with on-chain metrics and pattern analysis, suggests a higher probability of a downward move unless a strong bullish catalyst emerges. Investors are encouraged to monitor price action, volume trends, and institutional activity for potential signs of a reversal [1].

Source: [1] Ultra Rare Golden Cross XRP: What Does It Mean? (https://www.bitget.com/wiki/ultra-rare-golden-cross-xrp) [2] Will XRP price drop toward $2 or reverse course? (https://cointelegraph.com/news/will-xrp-price-drop-toward-2-dollars-or-reverse-course) [4] XRP Double Bottom Pattern Fuels Case for Rally Into Two Digits (https://thecryptobasic.com/2025/09/06/xrp-double-bottom-pattern-fuels-case-for-rally-into-two-digits/) [6] BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, HYPE, SUI (https://cointelegraph.com/news/price-predictions-9-5-btc-eth-xrp-bnb-sol-doge-ada-link-hype-sui) [7] Crypto News: XRP & Ethereum Dominate Feeds As A ... (https://coindoo.com/crypto-news-xrp-ethereum-dominate-feeds-as-a-payfi-challenger-quietly-climbs-every-watchlist/)