In the early months of 2024, XRP has not kept pace with Bitcoin‘s significant market gains, with Bitcoin enjoying a 60% increase since the year began, while XRP has seen a marginal decline of about 2.5%. The XRP/BTC trading pair, in particular, has faced a steep 40% decline over the same period. Despite this, there are indications that XRP is poised for a rebound as Bitcoin approaches its anticipated halving event in April 2024.
Historical Performance Suggests XRP Comeback
Historically, XRP has demonstrated a tendency to surge in value relative to Bitcoin around the latter’s halving events. Following Bitcoin’s third halving in May 2020, the XRP/BTC rate soared by over 100%, and it similarly jumped by 85% after the second halving in July 2016. These precedents suggest that XRP could see a significant performance boost after the upcoming Bitcoin halving on April 19th.
This performance is typically linked to a decrease in Bitcoin’s market dominance, which often leads to an ‘altseason’ where investment focus shifts from Bitcoin to alternative cryptocurrencies. Altcoins are frequently sought after for their potential for swift and substantial returns due to their lower market caps and greater volatility in comparison to Bitcoin.
Technical Indicators Point to XRP Growth
The XRP/BTC chart exhibits a ‘falling wedge’ pattern, with converging descending trend lines since February. This pattern is traditionally considered a precursor to a bullish reversal. If the price breaks above the upper trend line, it could rise significantly, with technical analysis suggesting a target of around 0.00001022 BTC, indicating a 16.75% increase from the current levels for April or May.
Considered Points
- XRP historically outperforms Bitcoin post-halving.
- Investor trends shift towards altcoins seeking rapid gains.
- Technical analysis predicts a potential 16.75% increase for XRP/BTC pair.
- A 70% increase to the 50-week EMA level of 0.00001449 BTC is expected by June.
For a longer-term forecast, by June 2024, the weekly timeframe analysis expects XRP’s price to reach a 70% increase against Bitcoin, targeting the 50-week EMA level of 0.00001449 BTC, a figure historically associated with bullish sentiment following past Bitcoin halving events.