XRP Eyes Golden Cross Against Bitcoin, With Fib Extension Targeting $5

XRP is looking to secure a first-of-its-kind golden cross against Bitcoin, with its Fibonacci extension levels targeting a new all-time high.

Notably, the recent market condition has not been particularly favorable to altcoins like XRP, which is currently 22% down over the past seven days. While Bitcoin (BTC) championed the latest downturn, it has held up better than the altcoin market due to its growing maturity.

Despite this, XRP was one of the biggest gainers of the market-wide uptrend triggered by President Donald Trump’s victory in the November elections. This allowed XRP to outperform Bitcoin for four consecutive weeks, gaining 155% against BTC from Nov. 11 to Dec. 8, 2024.

XRP Eyes Golden Cross Against Bitcoin

Notably, this rapid ascent from XRP resulted in a sharp surge for the 23-week moving average (MA) on the XRPBTC chart, as momentum picked up. This MA appreciated from 0.00000871 on Nov. 11 to the current figure of 0.00001700. 

However, a more interesting development is how this surge from the 23-week MA has placed it on par with the 200-week MA, currently at 0.00001707 BTC. As a result, the 23-week MA is now on the verge of triggering a massive golden cross on the XRPBTC weekly chart. 

For the uninitiated, a golden cross occurs when a shorter-term moving average crosses above a longer-term moving average. In this case, once the 23-week MA (0.00001700) moves above the 200-week MA (0.00001707), the golden cross has materialized. This event typically leads to further price upside.

However, with the recent pullback XRP now faces against Bitcoin, down 15.69% in the last two weekly candlesticks, the surge from the 23-week MA has halted. Should XRP resume its uptrend against BTC for a few more weeks, the 23-week MA is likely to push past the 200-week MA within a month.

It bears mentioning that should this crossover occur, this would mark the first time a golden cross of this magnitude materializes on the 1-week chart. Notably, such an event could have massive implications for prices.

Fibonacci Extension Targets $5 XRP Price

At the current price of 0.00002490 BTC, XRP is sitting above its immediate Fibonacci support at 0.00002395, which has acted as a buffer against steeper declines. Further, the DMI confirms that the +DI (blue) is sloping downward while the -DI (orange) is trending upward, showing that Bitcoin is gaining ground against XRP.

However, despite this trend, the +DI at 34.4 remains higher than the -DI at 20.1, indicating that XRP is still in an uptrend against Bitcoin. Should the bulls regain control of the scene, an XRP resurgence could turn the tides again in prices. 

With a recovery, XRP could first target the 0.00002864 BTC level, aligning with the 78.6% Fibonacci retracement. The asset first lost this level on the back of the recent downturn. If the golden cross provides enough uptrend momentum, XRP could target the previous peak at 0.00003462 BTC, before eyeing a new top of 0.00004222.

The bulls could leverage this 0.00004222 BTC price mark to target the higher Fibonacci 1.618 extension, which aligns with the 0.00005189 BTC mark. With a Bitcoin price of $97,721, XRP price in dollar terms would rise to $5.07, a new all-time high, if it reached the 0.00005189 BTC level. Such a rally is highly probable.