Is XRP Declining With Bitcoin? Chart fractal mirrors 500% lineup setup
XRP (XRP) has made a strong comeback against Bitcoin (BTC), gaining almost 30% since July's “triple bottom”. A mix of fundamental and fractional indicators suggest that XRP is well positioned to continue its gains in the coming months.
XRP price recovery mirrors 2021 500% rally
The XRP/BTC trading pair has risen by more than 50% since the bottom formed around 760 satoshis (1 satoshi = 0.00000001 BTC) in early June 2024. 500% rally between January and May 2021.
During the 2021 rally, XRP/BTC encountered resistance at the 50-week exponential moving average (50-week EMA, red tide), causing it to pull back before resuming its upward momentum. A similar pattern appeared in August 2024, when the pair faced rejection after testing the 50-week EMA.
Traders look to the 50-week EMA as a key level where selling pressure will increase. However, if XRP/BTC overcomes the resistance of the wave, it could indicate a bullish trend similar to the 200-week EMA (the blue wave) around 1,890 satoshis, a reversal target in 2021.
In other words, if XRP/BTC successfully breaks above the 50-week EMA around 1,120 satoshis, it could rise by 100% by the end of 2024.
The post-half fractal makes XRP's bullish outlook even more so
Another sign of XRP is Bitcoin's potential peak in market dominance, which typically follows a halving.
For example, the Bitcoin Dominance Index (BTC.D) is down more than 70% since its decline in the second half of July 2016, indicating that traders are diverting their capital from BTC markets and seeking exposure in altcoins such as XRP.
However, XRP/BTC underperformed following the third half decline in May 2020, largely due to the United States Securities and Exchange Commission's (SEC) lawsuit against Ripple in December 2020 that kept investors' confidence in check.
Related: Crypto Analyst Suspect Bitcoin's Dominance Is ‘Rebounding' To 70% Again
As of August 2024, the SEC vs. Ripple case settled, Ripple was ordered to pay a fine of 125 million dollars for illegally selling XRP to institutional investors. Since the decision, XRP/BTC has risen by about 15%, indicating the potential for further gains, especially if Bitcoin dominates after the previous halving in April 2024 following the typical post-halving decline (in terms of altcoins).
XRP looks bought compared to Bitcoin, Ethereum
XRP appears to be overbought in 2024 compared to most top cryptocurrencies including Bitcoin so far in the US dollar.
XRP/USD is down roughly 3.5% year-to-date compared to BTC/USD's 37.80% gain over the same period. Other altcoins including Ether (ETH), Solana (SOL) and BNB (BNB) have also outperformed XRP, gaining 13%, 30% and 84% in 2024.
XRP's relative underperformance may indicate that it has room to follow if market conditions become more favorable. Investors may see this as a rallying opportunity for the XRP pair, especially if the broader altcoin market continues to perform well.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
