XRP Rallies 7%: Golden Cross Indicates Potential for Further Gains

XRP has witnessed a notable increase of over 7% within the last 24 hours, bringing its market capitalization close to $150 billion. This rise has sparked discussions in the crypto community regarding the implications of its inclusion in the US crypto strategic reserve on its future price movements.

Additionally, all eyes are set on the upcoming White House Crypto Summit scheduled for March 7, which may significantly influence market sentiment. The continuation of XRP's upward trend or the emergence of new resistance will largely depend on these developments, along with confirmations from technical indicators.

XRP DMI Shows Buyers Remain in Command

XRP’s Directional Movement Index (DMI) indicates that its Average Directional Index (ADX) sits at 18.49, down from 36.2 four days prior, suggesting a marked weakening of trend strength.

The +DI (positive directional index) is recorded at 25.1, having decreased from 50, while the -DI (negative directional index) has increased to 14.4 from 9.3.

This change indicates a decline in bullish momentum and a slightly rising selling pressure, posing challenges for XRP to firmly establish an upward trend.

The ADX assesses trend strength on a scale of 0 to 100; readings above 25 signify a strong trend, while values below 20 suggest weak momentum. XRP’s ADX of 18.49 signals that its current progression lacks robust support. The falling +DI indicates a potential loss of buyer control, whereas the increasing -DI suggests sellers are becoming more influential.

If this trend persists, XRP might find it difficult to maintain upward momentum. Conversely, if the ADX rebounds alongside a rising +DI, bullish momentum could return.

Record Number of Active Addresses for XRP

XRP's active addresses experienced a surge, reaching 1.16 million over the past week, marking a new all-time high.

This significant increase follows a low of merely 236,000 on February 27, showcasing a substantial rise in network activity.

Monitoring active addresses is crucial as it reflects user engagement, transaction frequency, and overall demand for a cryptocurrency.

A rising number of active addresses often indicates heightened adoption and interest, potentially supporting price growth. Despite ongoing debates within the community over XRP's consideration for the US crypto strategic reserve, the spike in network activity suggests a solid level of engagement.

If this upward trend continues, it could bolster bullish momentum for XRP, likely driving its price higher.

Could a Golden Cross Propel XRP Soon?

XRP’s exponential moving average (EMA) lines hint that a golden cross may soon take place, as short-term moving averages are on the rise. If this bullish indicator manifests, XRP’s price could encounter resistance at $2.74, with a potential breakout targeting $2.99 and possibly $3.15.

This outlook hinges on significant upcoming developments, including the next steps regarding the US crypto strategic reserve and potential announcements at the White House Crypto Summit on March 7.

Tracy Jin, COO of MEXC, highlighted the complexities surrounding the establishment of strategic reserves, suggesting that it may require either an executive order or Congressional authorization. This could potentially undermine long-term policy stability. While initiatives from the Trump administration are expected to enhance market confidence and attract institutional investments in the short term, uncertainties regarding policy effectiveness, legislative support, and international reactions persist.

In contrast, should XRP fail to build a solid uptrend amid increased selling pressure, it may test support levels at $2.50, with further declines possibly pushing it down to $2.33 or lower.

A significant downturn could see prices plunge to $2.06 or even below $2, testing the $1.95mark.