XRP vs. Bitcoin: Chart Fractal Suggests Potential for 500% Rally

August 26, 2024 01:48 PM AEST | By Team Kalkine Media

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XRP vs. Bitcoin: Chart Fractal Suggests Potential for 500% Rally — Image source: Shutterstock

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XRP's recent performance has shown a significant rebound, mirroring a bullish chart pattern observed in 2021. Since July's "triple bottom" formation, XRP has gained approximately 30% against Bitcoin, suggesting a continuation of this upward trend based on historical and technical indicators.

XRP recovery trajectory closely resembles the price action witnessed during its 2021 rally, which saw a substantial 500% increase. The XRP/BTC trading pair reached a local bottom in early June 2024, aligning with a key support level from the 2021 rally. During that period, the pair encountered resistance at the 50-week exponential moving average (EMA), leading to a temporary pullback before resuming its upward movement. A similar pattern emerged in August 2024, where XRP/BTC faced resistance at the 50-week EMA.

This resistance level remains a critical point for traders, as overcoming it could signal a potential bullish trend toward the 200-week EMA. If XRP/BTC surpasses the 50-week EMA, a rise of approximately 100% could be anticipated by the end of 2024, reflecting a similar pattern to the 2021 trend.

Additionally, post-halving trends in Bitcoin market dominance offer further bullish signals for XRP. Historically, Bitcoin dominance has declined following halvings, with traders shifting their focus to altcoins. The drop in Bitcoin dominance after previous halvings, such as in July 2016, led to increased interest in altcoins like XRP. Although XRP/BTC faced challenges following the 2020 halving due to regulatory issues, the recent resolution of the SEC lawsuit against Ripple has been positively reflected in the price action of XRP/BTC.

In 2024, XRP has shown relative underperformance compared to major cryptocurrencies such as Bitcoin and Ethereum. XRP/USD has decreased while BTC/USD and other prominent altcoins have risen significantly. This underperformance may indicate potential for XRP to catch up, especially if broader market conditions become more favorable for altcoin performance.

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