Ripple’s XRP token has been all over the news lately as its value skyrocketed last week. The digital asset surged 82% last week, making it the top-performing cryptocurrency. This surge in XRP and other tokens like Cardano has led many analysts to believe that the crypto market is about to enter a new altcoin season.
Most traders had dismissed XRP as a major bull market until it surged to $1,265 last week. This was the highest recorded gain for the token in the past three years, leading many analysts to predict that the coin will continue to surge further in the coming days.
This unprecedented surge in XRP could be due to ongoing regulatory developments in the United States and some backlash against the token. The digital asset could see further gains this week as a possible Cardano-Ripple partnership to address regulatory issues is heating up the market for the two altcoins.
Interest in XRP is being driven by how crypto whales are accumulating the token in preparation for the altcoin season. The cryptocurrency has now broken out of the triangular accumulation that began in 2018 and is likely to see a breakout. Despite the significant gains, the upcoming rally could be even bigger.
The current rally was evidenced by a 20% price correction to $1, where a golden cross pattern emerged. This shows the 200-day and 50-day moving averages crossing from bottom to top.
When such short-term curves are higher than the long-term curves, it indicates that the token is going to increase in price. Such golden crosses on the weekly price chart are extremely rare. This is possible because the token has a long trading history, more than a decade to be exact.
The opposite could also be true, as the golden cross could trigger the end of the XRP bull run as seen in April 2021. However, analysts are betting on a surge as XRP surged over 350% to hit $1.97 while the Golden Cross was forming. The coin could potentially see a 550% price increase by December.
At the time of publication on November 19, XRP was priced at $1.10, up 4.93% over the past 24 hours while trading volume dropped 26.16% to $9.81 billion and market capitalization increased to $62.49 billion.
