A crypto analyst says the XRP price has finally entered a Golden Pocket, meaning the digital asset was on the verge of attracting many investors seeking opportunities to buy and hold as the bullish market consolidates.
According to a post on TradingView by crypto analyst ColdBloodedCharter, the current position, future trends, and buying levels of XRP are in what is technically called a Golden Pocket. The analyst disclosed this following an analysis of the XRP price’s 50-day Moving Average (MA).
XRP Price in a Consolidation Phase
ColdBloodedCharter started by stating that, based on his analysis from the previous day, the new Golden Pocket was acting as a resistance level if approached from below. However, looking at the XRP price from a short-term outlook, the expert said there was a slightly low chance for an immediate breakout. He stated that this could be attributed to selling pressure caused by recent 500 million XRP escrow unlocks initiated by Ripple Labs earlier this week.
As per the expert, the XRP price has been in a consolidation phase for at least 20 days after the token hit a cycle high but met a barrier that prevented an immediate bullish XRP price breakout. The analyst noted that the token’s last consolidation phase lasted over 39 days when XRP hit the $2.91 price tag on December 3, 2024.
A Strong Rebound in the Offing
Based on the historical trend, the analysts believe that the XRP price could experience at least two or three more weeks of weak price action before the bullish momentum arrives and pushes the token to the next big move. According to the analyst, the XRP price triangle pattern suggests the possibility of a strong rebound soon that could push the price target to at least $3.43 should the token manage to hold on to the Golden Pocket support.
What is a Golden Pocket?
In trading, it refers to an asset’s key retracement level between 38.2% and 61.8%. Analysts consider these levels significant support and resistance levels as they can help traders determine potential market reversals. The golden pocket concept is ancient, dating back to the Greek and Egyptian eras. However, Leonardo Fibonacci, the man who discovered the Fibonacci sequence of numbers used to determine the golden ratio, is believed to have rediscovered it.
Cornerstone for Analyzing the Market
When applied to crypto analysis, the golden pocket is expressed as a percentage and becomes a cornerstone for analyzing the market. Fibonacci levels such as 23.6%, 38.2%, 50%, and 61.8% can be derived directly from the golden ratio. The levels can be used to predict price retracements and form a robust framework for traders to navigate market volatility.
Conclusion
While ColdBloodedCharter presents $3.43 as the next XRP price to look forward to, the analysts have outlined important buy-the-dip levels that potential investors can watch out for as they prepare for a possible XRP price breakout. The analyst believes the $2.5o level would be a primary support area for the token, as investors would benefit from a 6-7% discount from the ongoing low prices.
Frequently Asked Questions (FAQs)
What is XRP?
XRP is a digital asset and the native cryptocurrency of the XRP Ledger. It facilitates fast, low-cost international money transfers.
Is XRP decentralized?
Yes, the XRP Ledger is decentralized. This means it is not controlled by any single entity but is maintained by a network of validating nodes.
What are the use cases for XRP?
XRP can be used for different purposes, including cross-border payments and remittances and as a bridge currency for other cryptocurrencies.
Where can I buy XRP?
Users can buy or sell XRP on various cryptocurrency exchanges using fiat currency or other cryptocurrencies, such as Bitcoin or Ethereum.
References
Appendix Glossary to Key Terms
Crypto: A colloquial term referring to a digital currency designed to work through a computer network that is not reliant on an intermediary.
Bullish Momentum: Bullish momentum in financial markets refers to a period when the price of an asset is rising steadily, the opposite of bearish momentum, which refers to a period when the price is steadily falling.
Price analysis: The study of prices of products and services offering a detailed breakdown of the different types of prices available in a market.
Consolidation phase: A stage in the industry life cycle where competing factors within the market start to merge.
Golden pocket refers to a point in the market where a given uptrend reverses completely.
