This year, XRP (XRP) has underperformed Bitcoin (BTC) in price growth, with a decrease of approximately 2.5% compared to Bitcoin’s impressive 60% increase as of the current period. Consequently, the value of one Bitcoin in terms of XRP has dropped by around 40%.
Before Bitcoin’s halving in 2024, the Bitcoin price was displaying indications of improvement. Several optimistic signs might boost this trend and significantly enhance it post-halving.
XRP price post-halving fractal
In the past, XRP has often surpassed Bitcoin’s performance during the time leading up to and following Bitcoin’s halving events.
The XRP/BTC price increase saw over a 100% gain following the third Bitcoin halving in May 2020, while it surged by approximately 85% around the second Bitcoin halving in July 2016.
The ways in which XRP‘s patterns are shaping up offer a good chance that it could surpass Bitcoin’s performance after the upcoming halving on April 19.
After Bitcoin’s halving, the increase in value of XRP relative to Bitcoin can primarily be attributed to Bitcoin’s decreased influence. This pattern indicates that investors often shift their funds from Bitcoin to alternative coins following this occurrence, leading to what is known as an “altcoin season.”
An explanation is that altcoins provide potential substantial profits in the short term because they have smaller market values and greater price fluctuations than Bitcoin.
XRP’s technical patterns flip bullish
Since February, the graph of XRP‘s value relative to Bitcoin (XRP/BTC) has followed a falling wedge formation. This pattern is marked by the price moving between two downward sloping trends that gradually converge.
An descending triangle formation often signals a bullish turnaround when the price surpasses the upper trendline and advances by a distance equivalent to the gap between the two trendlines.
By applying the same method used in technical analysis to the recent XRP/BTC price patterns, the projected breakout price for April or May rises to approximately 0.00001022 BTC, representing a nearly 17% increase from the current values.
On a weekly basis looking towards 2024, the anticipated target for XRP‘s price relative to Bitcoin is forecasted to hit the 50-week Exponential Moving Average (50-week EMA), which can be seen as the red wave in the chart below. This translates to a significant rise of approximately 70% from current prices, placing it at around 0.00001449 BTC by mid-year.
Significantly, traders have frequently looked towards the same 50-week Exponential Moving Average (EMA) level as their anticipated bullish goal after the past two Bitcoin halvings occurred.
XRP whales return to accumulation
XRP is meanwhile also seeing aggressive accumulation by its wealthiest investors.
Starting in March, there has been a significant rise in the amount of entities owning over 1 million XRP tokens. Additionally, since April, the group of investors possessing between 100,000 and 1 million XRP tokens has also been growing steadily.
The increasing number of large investors expressing optimism towards Bitcoin ahead of its upcoming halving event is highlighted by this trend.
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2024-04-11 15:21