Golden Crossover: XRP Heads for Bullish Chart Pattern as Price Climbs 27%

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XRP is teasing a long-term bullish reversal, with a surge in price and a bullish chart pattern likely to occur next week.

The world's third largest cryptocurrency by market capitalization is currently trading at $0.413 on Bitfinex, representing a 27 percent gain on the opening price of $0.3249 seen May 1.

The cryptocurrency had rallied 73 percent from $0.3350 to $0.5820.

The cryptocurrency may produce much bigger gains in the following months as a widely tracked long-term technical indicator is about to turn bullish.

That would confirm a "Golden crossover" - a pattern which indicates long-term bullish reversal, according to technical analysis theory.

An impending golden crossover could be considered a product of XRP's rise from the April 25 low of $0.2825 to the recent high of $0.4787 rather than a hint of further gains.

The golden crossover may invite chart-driven buying, leading to the next leg higher in the cryptocurrency.

As seen above, the 50-day MA is fast closing on the 200-day MA. The crossover confirmation could be followed by a convincing break above the recent high of $0.4787 as the 14-day relative strength index is currently biased bullish at 61.00 and well short of the overbought territory.

XRP jumped 34 percent in seven days to May 19, validating seller exhaustion seen near $0.28 in the first 4.5-months.

So far the follow-through to that bearish-to-bullish trend change has not been bullish.

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