Why XRP Price Can Jump 70% Against BTC After Bitcoin Halves
XRP (XRP) has lagged behind Bitcoin (BTC) in terms of price performance in 2024, falling around 2.5% year-to-date (YTD) with the top cryptocurrency gaining 60% over the same period. In turn, the XRP/BTC exchange rate is down 40% YTD.
However, the pair is showing signs of recovery in the days ahead of Bitcoin's halving in 2024. A constellation of bullish signals can increase this momentum, which may increase following the event.
XRP price post-half fractal
Historically, XRP has tended to outperform Bitcoin around halving events.
For example, the XRP/BTC pair rose more than 100% after the third Bitcoin halving in May 2020.
These patterns boost XRP's chances of Bitcoin after the April 19 halving.
The observed gains in XRP/BTC are largely due to the halving of Bitcoin dominance. This trend suggests that traders will shift their investments from Bitcoin to altcoins following the event, commonly known as the altseason.
One reason is that altcoins can offer high short-term gains due to their low market value and high volatility compared to Bitcoin.
XRP technical patterns are highlighted
XRP/BTC has been trending in a falling wedge pattern since February, characterized by two bearish and converging trends in a volatile environment in the price.
A falling wedge pattern is a bullish reversal setup that resolves after the price breaks above the upper trend line and has a length equal to the maximum distance between the high and low trend line.
Applying the same rule of technical analysis to the ongoing XRP/BTC price trends fixes the April/May breakout target to 0.00001022 BTC, which is around 16.75% from current levels.
Related: XRP Disappoints with Bitcoin in 2024 – Possible Price Reversal?
Looking ahead to the weekly timeframe of 2024, XRP's price objective is the 50-week exponential moving average on Bitcoin (50-week EMA, represented by the red wave in the chart below) at 0.00001449 BTC. This represents a 70% increase from the price points in June.
Specifically, traders have been targeting the same 50-week EMA wave as their bullish target following the past two Bitcoin halvings.
XRP whales return to stock
Meanwhile, XRP is seeing aggressive hoarding by its ultra-wealthy investors.
For example, since the beginning of March, there has been a significant increase in the number of entities that own more than 1 million XRP tokens, and since April, the share of owners with at least 100,000 XRP tokens has begun to increase.
This trend highlights the growing bullishness among whales in anticipation of Bitcoin's halving.
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.
