XRP (XRP) is showing signs of a potential strong recovery against Bitcoin (BTC), echoing a bullish chart pattern from 2021 that led to a massive 500% rally. After forming a “triple bottom” in July, XRP has gained approximately 30%, with indicators suggesting that this momentum could continue.
XRP/BTC Price Mirrors 2021 Rally
The XRP/BTC trading pair has seen a significant bounce, surging over 50% since bottoming out at around 760 satoshis in early June 2024. This price level is crucial, as it aligns with the support level from 2021 that preceded a 500% rally. During that period, XRP/BTC faced resistance at the 50-week exponential moving average (50-week EMA), leading to a pullback before continuing its upward trajectory.
XRP/BTC weekly performance chart. Source: TradingView
A similar pattern emerged in August 2024, where the pair once again faced resistance at the 50-week EMA. If XRP/BTC can break through this resistance level, it could signal a further rally toward the 200-week EMA at around 1,890 satoshis. This would suggest a potential 100% upside by the end of 2024.
Bitcoin Dominance and XRP’s Bullish Outlook
Another factor supporting XRP’s bullish outlook is Bitcoin’s potential top in market dominance, typically observed after Bitcoin’s halving events. Historically, Bitcoin dominance has decreased after halvings, as traders diversify into altcoins like XRP.
Although XRP underperformed following the May 2020 Bitcoin halving due to the SEC’s lawsuit against Ripple, the situation has changed. With the SEC case now resolved and Ripple ordered to pay a $125 million penalty, XRP/BTC has risen by 15%, signaling the potential for further gains, especially if Bitcoin dominance declines post-halving as expected.
XRP’s Underperformance Signals Opportunity
In 2024, XRP has underperformed in US dollar terms compared to top cryptocurrencies like Bitcoin and Ethereum. While BTC/USD has gained 37.8% year-to-date, XRP/USD has dropped by around 3.5%. This relative underperformance suggests that XRP may have room to catch up, particularly if the altcoin market continues its upward trend.
Top 10 cryptocurrencies and their 30-day and YTD performances. Source: Messari
Investors may see XRP’s current position as an opportunity for future gains, especially as market conditions become more favorable.
