XRP recorded a 6.9% gain in response to shifting capital flow patterns across the crypto market. The upward momentum was driven by capital rotation moving from Bitcoin into altcoins. This investment shift is evident in Bitcoin’s market dominance, which slipped to 59% from a previous level of 64%.
The price recovery brings a breath of fresh air to altcoins previously weighed down by macroeconomic uncertainty. Second-tier assets had been pressured by three consecutive headwinds from monetary policy and national regulatory developments: interest rate hike announcements from the Federal Reserve, voting dynamics surrounding the CLARITY Act crypto bill, and monetary tightening by the Bank of Japan.
Daily Technical Indicators Narrow Sharply
Capital inflows into the altcoin ecosystem have brought XRP’s daily chart to a technical crossroads. The distance between the 50-day and 200-day Exponential Moving Averages (EMAs) has contracted rapidly, reaching its narrowest spread since records in August 2024.
The tightening range between the two daily indicators opens a strong possibility for a technical Golden Cross. This formation, widely considered a strong signal of a bullish trend reversal, is projected to materialize around mid-October 2026. However, confirmation of the trend depends on continued accumulation sentiment from market participants.
Early Signals from the 4-Hour Chart
The roots of the trend reversal were already visible on shorter timeframes. Analysis of the 4-hour chart reveals that XRP’s moving averages have already formed a golden cross crossover. This bullish signal on shorter timeframes has been tracking along its trajectory since August 21.
Short-term momentum was previously tested by volatility lacking broad buying volume. The drop in Bitcoin dominance coincided with fresh replacement capital entering the altcoin market, helping extend the hourly bullish momentum toward broader targets on the daily chart.
The convergence of technical moving averages provides a reliable reference for token holders. The narrowing daily EMA spread shifts market focus away from guessing the exact impact of central bank decisions on portfolio allocations. Source: Decrypt.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
