XRP benefits from Bitcoin’s awakening

While bitcoin has just returned above the $80,000 threshold and capital is starting to flow into altcoins again, XRP has just gained 6.93%. Above all, behind this increase there is a scenario monitored by investors. Indeed, the moving averages of XRP are approaching a probable golden cross. This movement remains to be confirmed, however various technical indicators now offer more weight to the hypothesis of a lasting rebound.

XRP approaches a golden cross on the daily chart

XRP started the session at $1.2964, before reaching $1.4028 at its highest and falling back to around $1.3863. This 6.93% increase positions the token among the assets having recorded one of the most marked movements in recent weeks.

The trajectory of the exponential moving averages was the most observed point. Thus, it is worth noting that the 50-day EMA is still trading below the 200-day EMA, which keeps XRP in a pattern of “death cross”.

However, the gap between the two curves has narrowed considerably. Now it is at its lowest level since the last “golden cross” occurred in August 2024. If this momentum continues, the 50-day EMA would cross the 200-day EMA by mid-October.

This crossover is usually interpreted as a sign that an upward trend is taking hold over time. However, this signal remains conditioned.

THE main levels noted allow us to summarize the current configuration:

• 1.2964 dollars: this is the opening level of XRP;
• 1.4028 dollars: the high reached during the session;
• 1.3863 dollars: this is the level around which the token was moving;
• Mid-October: this is the period when a daily golden cross could appear if the current rhythm continues.

Technical indicators support the rebound without yet validating it

New technical data provide more consistency to this movement. The Average Directional Index reached 35.2, higher than the threshold of 25 used to identify a sufficiently marked trend.

Thus, the positive directional line, DI+, remains above the negative line DI-, which reveals that this force is currently exerted in favor of buyers. The RSI is at 54.6, a neutral zone which does not yet reflect the overbought situation despite the increase close to 7%.

For 11 consecutive bars, the Squeeze Momentum Indicator remains activated. This pattern equates to a volatility compression that may precede a larger price fluctuation. The associated momentum returns to the green, which slightly consolidates the bullish scenario.

However, this development has not yet been achieved. The technical reading still depends on multiple confirmations, including the ability of XRP to keep its current levels and transform the rapprochement of the averages into a real crossover.

Declining Bitcoin Dominance Gives Back Space to Altcoins

XRP’s rebound also comes in a market that is regaining appetite for altcoins. At the end of a period marked by an increase in rates by the Federal Reserve, the failure of a vote on the advancement of the CLARITY Act in the US Senate and a rate increase by the Bank of Japan, bitcoin has regained the threshold of 80,000 dollars. However, its dominance over the total crypto market capitalization declined from 64% to 59%.

This decline reflects a rotation of part of capital towards altcoins, from which XRP benefits. The context therefore becomes more favorable to Ripple’s crypto, without erasing the technical conditions useful for confirmation.

The $1.38 area now represents a level to watch. Maintaining above this threshold, accompanied by a daily golden cross around mid-October and an ADX above 25, could consolidate the hypothesis of a more lasting rebound. A rapid break below this zone would, on the contrary, expose XRP to the scenario of a short-term squeeze. Today’s rise opens a technical window, but it does not yet decide what happens next.