XRP has recorded a significant technical milestone by forming its first golden cross compared to Bitcoin on the weekly timeframe, a development that analysts view as a strong indicator of long-term strength.
This event occurs as XRP continues to show growth momentum both on-chain and in market activity, despite years of underperformance due to overlapping regulatory oversight.
In technical analysis, a golden cross is defined as the point where the short-term moving average crosses above the long-term moving average, often interpreted as a potential shift from a bearish to a bullish trend.
In this case, the 50-week moving average of XRP has moved above the 200-week moving average compared to Bitcoin. This is the first time this crossover has occurred for the XRP/BTC trading pair, and it indicates the potential for a reversal of XRP's relatively poor performance since late 2020.
Potential impacts on XRP's price performance
This formation is attracting attention as it occurs after nearly four years of the XRP/BTC ratio being sideways, a period during which XRP largely failed to capitalize on the broader market rallies due to the legal battle with the U.S. Securities and Exchange Commission (SEC). Currently, with increased clarity surrounding Ripple's position and growing on-chain activity, the market is reassessing XRP's relative valuation.
Some market participants view this technical change as a sign that XRP could outperform Bitcoin in the coming months, especially as the altcoin market gradually recovers and investors begin to rotate capital out of Bitcoin. This move is considered particularly noteworthy as most altcoins are still lagging behind Bitcoin in performance to date.
XRP Ledger saw strong growth in Q1 2025
Accompanying this technical signal is data showing significant growth in XRP's network activity. According to Messari's 'State of XRP Ledger Q1 2025' report, XRP's circulating market capitalization increased by 2% quarter-on-quarter (QoQ), contrasting with a combined decrease of 22% for Bitcoin, Ethereum, and Solana. On a year-over-year (YoY) basis, XRP's market capitalization soared by 252%, up from $34.6 billion at the end of Q1 2024.
Other important metrics also reflect sustainable growth momentum. The number of daily active addresses increased by 142% quarter-on-quarter, reaching 134,600. The number of new addresses rose by 12% from the previous quarter, totaling 568,300, an increase of 210% year-over-year.
Notably, the number of receiving addresses on the XRP Ledger continues to exceed the number of sending addresses for the fourth consecutive quarter, signaling an expanding trading participant base. The average daily receiving addresses increased by 168% to 127,800, while the average daily sending addresses grew by 14.5% to 34,300.
The first golden cross of XRP compared to Bitcoin on the weekly chart, along with positive growth in its core network metrics, may mark a turning point in its long-term trajectory. As the technical indicators and relevant adoption metrics align, investor sentiment towards XRP appears to be improving, potentially positioning this asset for relatively stronger performance in the broader cryptocurrency market.
