XRP’s Golden Cross Flash: A Bullish Signal That Delivered Massive Gains Before – Will History Repeat?

XRP just triggered a technical event that's made traders' palms sweat since 2017. The Golden Cross—when a 50-day moving average punches above the 200-day—has historically preceded parabolic runs for the embattled token.

Past performance isn't a guarantee (ask your financial advisor who still thinks Bitcoin's a fad). But when XRP's chart flashed this pattern in Q3 2020, it ripped 650% in 90 days. The 2017 bull run? A cool 36,000% after the same signal.

Market mechanics suggest liquidity is priming for movement. With Ripple's legal overhang lifting and cross-border payment pilots expanding, the stars might finally align. Or it could be another false dawn for the 'banker's crypto.' Either way, the charts are screaming attention.

Why XRP Surged 630% And 54% In Its Last Two Major Rallies

In an August 8 post on X, prominent crypto analyst Ali Martinez painted an exciting bullish picture for the XRP price. According to the online pundit, the latest on-chain indications are that the XRP token is about to embark on an extended bullish rally over the next few months.

This positive projection revolves around unique movements of the MVRV (Market Value to Realized Value) Ratio, which assesses whether a cryptocurrency (XRP, in this case) is overvalued or not. Martinez noted that the altcoin could be back on its bullish tracks following a golden cross between the MVRV ratio and its 200-day simple moving average (SMA).

Typically, a golden cross refers to a bullish signal in technical analysis where a short-term moving average (MVRV ratio) crosses from below a long-term moving average (200-day moving average). What’s more interesting is the performance of XRP price the last two times this golden cross occurred.

According to the latest on-chain data, the last two times the MVRV ratio flashed this golden cross, the price of XRP surged by 630% and 54%, respectively. If history is anything to go by, the reappearance of this signal could open the doors to an extended rally for the third-largest cryptocurrency.

There is no question that the improving climate for cryptocurrencies in the United States could provide an enabling environment to sustain a significant bull run for the XRP token. Moreover, the shout of an altcoin season beginning further gives credence to the potential of XRP’s price witnessing exponential growth in the next few months.

XRP Price At A Glance

As of this writing, the value of XRP stands at around $3.31, with a 0.7% decline in the past 24 hours. This past day’s action is not a strong reflection of the altcoin’s performance on the weekly timeframe. According to data from CoinGecko, the XRP price jumped by more than 10% to reclaim the $3 mark over the past week.

Featured image from Pexels, chart from TradingView