- XRP shows potential for a 100% rally against Bitcoin if it can break above key resistance levels, supported by bullish historical patterns.
- With the SEC lawsuit resolved and Bitcoin dominance potentially declining, XRP could catch up and outperform in the broader altcoin market.
XRP has gained around 30% since forming a “triple bottom” in July 2024, signaling a potential bullish move in the coming months. A mix of fundamental and fractal indicators suggests that XRP could be gearing up for a significant price surge, especially against Bitcoin (BTC).
XRP/BTC Pair Shows Signs of Strength
The XRP/BTC trading pair has bounced by over 50% since hitting a local bottom of 760 satoshis in June 2024. This level aligns with the support that sparked a 500% rally between January and May 2021. Currently, XRP/BTC faces a key resistance at the 50-week exponential moving average (EMA), a level that has historically triggered selling pressure. This pattern is reminiscent of XRP’s performance in 2021, where it faced rejection at the 50-week EMA before continuing its bullish run.
If XRP can break above this crucial level—currently at around 1,120 satoshis—the pair could be primed for a move toward the 200-week EMA at approximately 1,890 satoshis. This target hints at a potential 100% rally by the end of 2024.
Bitcoin Dominance and XRP’s Opportunity
Another factor working in XRP’s favor is Bitcoin’s potential market dominance top, which typically follows its halving cycles. Historically, Bitcoin dominance has decreased as traders rotate capital into altcoins like XRP after major halvings. For example, the Bitcoin Dominance Index dropped by over 70% after the second halving in July 2016, triggering a wave of altcoin gains.
However, XRP underperformed after the third halving in May 2020 due to the United States Securities and Exchange Commission (SEC) lawsuit against Ripple. The legal battle dampened investor confidence and led to a sluggish XRP/BTC performance. With the lawsuit resolved as of August 2024 and Ripple ordered to pay a $125 million penalty, XRP/BTC has already gained 15%, suggesting the pair may have more room to run.
Undervalued XRP Could Catch Up
In US dollar terms, XRP appears significantly undervalued compared to top cryptocurrencies like Bitcoin and Ether. While BTC/USD has gained 37.8% year-to-date and Ether is up 13%, XRP/USD is down 3.5% in the same period. This underperformance could indicate that XRP has room to catch up, particularly if broader altcoin market conditions become more favorable.
Investors might see XRP’s current price levels as an opportunity, especially if the altcoin market experiences continued strength. Should XRP break through the key 50-week EMA resistance, it could set the stage for a sustained rally and potentially outperform Bitcoin in the months ahead.
