XRP jumped 6.93% on the day, opening at $1.2964 and topping out at $1.4028 before settling near $1.3863, marking one of its sharpest single-day moves in recent weeks.
The surge comes as Bitcoin climbed back above $80,000 following a difficult period marked by Federal Reserve action, a Senate vote against the Clarity Act, and a rate hike from the Bank of Japan. Bitcoin's recovery has triggered a broader rotation into altcoins, with Bitcoin's market dominance slipping from 64% to 59%.
Moving Averages Converging
On the daily chart, XRP's 50-day exponential moving average (EMA) remains below its 200-day EMA—a bearish setup known as a death cross. However, the gap between these averages has narrowed to its tightest point since August 2024.
If the current pace of gains holds, a golden cross—where the shorter-term average crosses above the longer-term one—could form as soon as mid-October. This technical pattern is widely interpreted by traders as a signal of sustained bullish momentum.
A complication exists on shorter timeframes: XRP's 4-hour chart already showed a golden cross on August 21, but the gap between the averages has been narrowing rather than widening since then, a potential warning sign.
Technical Indicators Paint Mixed Picture
Other indicators on the daily chart offer more optimistic signals. The Average Directional Index (ADX) sits at 35.2, well above the 25 threshold traders use to distinguish real trends from sideways movement. The positive directional line (DI+) is running above the negative one (DI-), indicating upward strength.
The Relative Strength Index (RSI) is at 54.6, in neutral territory—a healthy reading after a near-7% daily gain that leaves room for further appreciation before overbought conditions emerge.
XRP's Squeeze Momentum Indicator has been compressing volatility for 11 consecutive bars, a setup traders often interpret as precursor to a larger move. The momentum reading within that squeeze has been climbing toward positive territory, though the outcome remains uncertain.
What's Next
Traders will monitor two key developments in the coming weeks: whether Bitcoin's rebound sustains the altcoin rotation, and whether XRP's 50-day EMA can definitively cross above its 200-day counterpart.
A confirmed golden cross around mid-October, paired with the ADX holding above 25, would support the current bounce. Conversely, if XRP fails to hold around the $1.38 level, it would suggest the move is another short-term squeeze that fizzles before any crossover confirms.
