XRP, the fourth-largest cryptocurrency by market capitalization, has so far had a mixed week.
After a three-day decline at the start of the week, which saw XRP fall to $1.61 at one point, XRP reversed course, rising sharply from $1.72 to $2.09 on Wednesday.
Though the rebound was punctuated by a drop on Thursday, XRP resumed its recovery on Friday. On Saturday, XRP continued its recovery and is up 4.53% in the last 24 hours to $2.09 after reaching intraday highs of $2.185.
The week was notable, with Ripple acquiring prime brokerage Hidden Road for $1.25 billion, marking the largest deal ever for the digital asset company and one of the biggest in the history of the cryptocurrency industry.
Hidden Road will leverage Ripple’s RLUSD stablecoin as collateral across its prime brokerage products and move its post-trade activity to the XRP Ledger blockchain.
Reversal pattern emerges: Is storm over?
XRP created a “golden cross” on its hourly chart, indicating a short-term trend shift that could signal the beginning of a larger rebound. A golden cross occurs when a short-term moving average crosses over a longer-term one, signaling that upward momentum might be strengthening.
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Although golden crosses on larger time frames (such as daily or weekly charts) carry more weight, the hourly signal is still important.
While it’s still early to call a full-blown trend change, the appearance of a golden cross, combined with the recent price gains, is the most positive indication XRP has seen in recent weeks. If momentum continues to build, this could be the start of XRP’s next leg up.
For traders, the next critical level to watch is $2.26, which corresponds to the daily SMA 50. A successful break above this level could strengthen the reversal and pave the way for a higher target of $3. Another scenario is that XRP would consolidate in a range before making its next move, with support at the daily SMA 200 at $1.88 and subsequently $1.61.
