XRP, the fourth largest cryptocurrency by market capitalization, has completed a golden cross on its short-term charts, but the timing of the bullish signal raises questions. The 50 MA rose above the 200 MA on the two-hour chart, indicating a golden crossover.
However, the timing has traders being cautious amid weak spot demand and softer futures activity implying that any potential recovery still lacks strong conviction, even as ETF flows begin to turn modestly positive.
XRP ETFs saw inflows of $9.09 million on April 10, according to SoSoValue data, the largest since early February.
However, the broader market environments remain subdued, with weak spot activity and thinner derivatives participation continuing to restrict upside follow-through.
At the week’s start, Santiment reported that average wallets that have been active on XRP Ledger over the past year are down an average of -41% on their investments. This is the lowest MVRV (Mean Value to Realized Value) for XRP traders since the FTX crash in November 2022.
Breakout or fakeout?
XRP’s price is attempting to stabilize after a sharp move to a high of $1.396 earlier in the week. The appearance of a short-term golden cross remains noteworthy, but the question is whether this is real strength or a fakeout.
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While XRP saw a sharp price move at the week’s start, the lack of follow-through and weak broader structure, indicating cautious sentiment, caused its price to retreat. The price move could not yield a breakout above the daily MA 50 at $1.38, which has capped XRP’s price since late March, indicating that bears are actively guarding this level.
However, positivity remains as tight range trading near current levels shows buyers are at least attempting to build a support base, which might deter a further downward move.
Traders are watching $1.29 as the next XRP support in the short term, resistance at $1.38 (the daily MA 50) for a meaningful breakout and another support at $1.28, below which the breakout would be considered failed.
