XRP Jumps 7% as Capital Rotates Into Altcoins, Moving Averages Edge Toward Golden Cross

XRP climbed 6.93% on Thursday, opening at $1.2964, touching $1.4028 and settling near $1.3863, as Bitcoin regained the $80,000 level and traders rotated capital into smaller tokens. Bitcoin's share of total crypto market value, known as dominance, fell from 64% to 59% over the period, a shift that crypto data indicates typically accompanies money flowing into alternative cryptocurrencies.

The move came despite a run of headwinds. Markets had absorbed a Federal Reserve rate hike, a Bank of Japan rate increase that caught investors off guard, and a Senate vote of 49-50 that failed to advance the Clarity Act, the industry-focused crypto bill. Decrypt reported that Bitcoin held its range through all three, and the resilience lifted sentiment across the market heading into the end of the week.

The technical picture on XRP's daily chart remains bearish on paper. Its 50-day exponential moving average (EMA), a trend-tracking measure weighted toward recent prices, still sits below its 200-day EMA. Traders call that configuration a death cross, and it generally signals that short-term holders have fared worse than the longer trend.

The gap between the two averages has nevertheless narrowed to its tightest point since XRP's last golden cross in August 2024. A golden cross occurs when the shorter-term average crosses above the longer-term one, and traders treat it as an indication that upward momentum may persist rather than fade. At the current pace of gains, the crossover could register on the daily chart by mid-October.

A cautionary precedent sits on the shorter timeframe. XRP's 4-hour EMAs flipped bullish on August 21, but that spread has been closing again rather than widening the way a sustained breakout usually does. Analysts disagree on how much weight such short-term failures deserve; some argue each timeframe should be read on its own terms, while others see shorter charts as leading indicators for longer ones. Either way, a failed crossover on a 4-hour chart does not rule out confirmation on the daily.

Other daily indicators lean constructive

The Average Directional Index (ADX), which gauges trend strength regardless of direction, stands at 35.2 for XRP, well clear of the 25 threshold that separates a genuine trend from directionless trading. The positive directional line (DI+) is running above the negative line (DI-), placing the strength to the upside.

The Relative Strength Index (RSI) reads 54.6, in neutral territory. That matters for a token that just posted a near-7% daily gain: XRP has not yet reached overbought levels, leaving room before profit-taking pressures mount. Meanwhile, the Squeeze Momentum Indicator has signaled "on" for 11 consecutive bars, a reading that volatility is compressing and that traders typically interpret as a precursor to a larger move. The momentum component within that squeeze has been drifting back toward positive territory, suggesting an upward release is more likely, though the longer timeframe tempers that read.

Two questions now frame the setup. Whether Bitcoin's rebound holds long enough for the altcoin rotation to continue will determine if XRP keeps closing the moving-average gap. And whether the 50-day EMA clears the 200-day EMA on the daily chart will test the rally's substance. A confirmed golden cross around mid-October, with the ADX holding above 25, would validate the bounce; a drop below the $1.38 zone would increase the odds that the move fizzles before the crossover ever confirms.