XRP is eyeing a potential golden cross against Bitcoin, with a Fibonacci extension price target that could push its value to a new all-time high of $5. While the market for altcoins, including XRP, has been challenging, the cryptocurrency is showing signs of strength. Despite facing recent setbacks, XRP is demonstrating technical signals that suggest a significant price surge could be in store, especially in relation to Bitcoin.

In recent days, XRP has encountered a 22% decline in its value, while Bitcoin has weathered the market fluctuations better, benefitting from its increasing market maturity. However, XRP was one of the standout performers during the market uptrend triggered by President Trump’s 2024 election victory. Between November 11 and December 8, 2024, XRP outperformed Bitcoin, gaining 155% in value against the leading cryptocurrency. This highlights XRP’s potential for significant growth when market conditions are favorable.

XRP’s 23-Week Moving Average and Golden Cross Formation

A particularly interesting technical development has emerged with XRP’s 23-week moving average (MA). After a sharp rally, this key indicator rose from 0.00000871 on November 11 to its current value of 0.00001700 BTC. This surge has positioned XRP’s 23-week MA close to the 200-week MA, which stands at 0.00001707 BTC. The proximity of these two moving averages signals that XRP is on the verge of forming a golden cross.

A golden cross occurs when a shorter-term moving average crosses above a longer-term moving average, typically signaling the start of an upward price movement. If the 23-week MA crosses above the 200-week MA, it will be the first time such a golden cross has occurred on XRP/BTC’s weekly chart. The formation of this cross could be a powerful catalyst for an upward rally, as it usually suggests further price upside.

However, XRP’s recent decline of 15.69% over the last two weeks has temporarily halted its uptrend against Bitcoin. If the asset can resume its positive momentum in the coming weeks, the 23-week MA is likely to surpass the 200-week MA, potentially triggering the golden cross within the next month.

Fibonacci Targets Suggest $5 Price for XRP

As of now, XRP is priced at 0.00002490 BTC, sitting above immediate Fibonacci support at 0.00002395 BTC. The Directional Movement Index (DMI) shows a downward trend for the +DI (blue) and an upward trend for the -DI (orange), indicating that Bitcoin is gaining ground against XRP. However, despite this shift, XRP remains in an uptrend against Bitcoin since the +DI at 34.4 is higher than the -DI at 20.1.

Should XRP regain control and push its price higher, it could target the 0.00002864 BTC level, which aligns with the 78.6% Fibonacci retracement level. A successful golden cross could drive XRP toward the previous peak of 0.00003462 BTC, potentially leading to a new all-time high at 0.00004222 BTC. If this happens, XRP could continue its climb to 0.00005189 BTC, which represents the 1.618 Fibonacci extension.

Given Bitcoin’s current price of $97,721, reaching the 0.00005189 BTC mark would push XRP’s price to $5.07, a new all-time high for the cryptocurrency. If the golden cross and subsequent price action unfold as anticipated, XRP could see a significant surge in value, offering strong returns for investors.

In conclusion, XRP’s potential golden cross against Bitcoin, paired with bullish Fibonacci extension targets, suggests that the asset may be poised for a major price rally. Investors and traders will closely monitor the upcoming weeks to see if the golden cross materializes and drives XRP to new highs. With the right momentum, XRP could outperform Bitcoin once again, reaffirming its place as one of the leading altcoins in the market.