- XRP formed a golden cross on the 10 to 20 EMA, indicating a bullish trend.
- Traders remain skeptical despite the positive funding rate.
Ripple [XRP] has printed a 10 and 20 EMA golden cross for the first time since 2020. CoinsKid, a UK-based crypto expert, highlighted the development earlier this month. According to CoinsKid, this could be the spark that causes the token to go parabolic. A golden cross occurs when a short-term Moving Average (MA) crosses the long-term MA to the upside. In most circumstances, the price of the assets involved rises sharply after the cross.
Signs to reap the benefits of patience
When a similar incident occurred with XRP in past cycles, the analyst referred to them. When the golden cross occurred in 2017, XRP went from $0.24 in November to $2.09 by the end of the same year. Three years later, the token increased in value from $0.32 in late 2020 to more than $1 in early 2021. As a result, the analyst believes that history will repeat itself and that XRP will reach $9. XRP has recently been consolidating around the $0.45 to $0.50 range. However, the token has lost 10.49% of its value in the last 30 days, signalling a retracement from its outstanding performance in various sections of the second quarter.
Wait! Not so fast
The long/short ratio of XRP was 0.99, according to the derivatives information portal. The ratio compares the number of long positions in the market to the number of short posts.
A ratio greater than one indicates that there are more long positions than short positions. When the ratio is less than one, short positions outnumber long ones and negative views have prevailed. As a result, at press time, the XRP’s 24-hour long/short ratio indicated that traders were torn between backing an upswing and a drop.
The funding rate supported the analyst above’s bias, but not in the short run. Funding rates are often monthly payments of an asset between long and short-positioned traders. When the funding rate is positive, longs pay shorts. This indicates that the general perception of the token was positive. When it is the other way around, short traders tend to maintain their bearish sentiment while paying a funding charge to longs.