Key Takeaways
- XRP is showing signs of reversing months of underperformance versus Bitcoin and has broken out of a falling wedge
- The Supertrend indicator shows support below XRP’s price, echoing a previous setup that preceded a significant rally.
- Analysts reveal that XRP is testing the $2.65 resistance for a third time and could climb to $3 if it breaks through.
- However, a dip below CMF’s zero line or failure to hold the $1.94 support could send XRP’s price back toward $1.59.
XRP shows early signs of a potential comeback after months of underperformance against Bitcoin (BTC). Since March 24, CCN has observed that XRP’s price struggled to outperform BTC on a weekly timeframe.
The token, which has lagged behind the flagship cryptocurrency, currently trades around $2.43. But this week, the trend seems to be changing. Here is what that could mean for XRP’s price in the short term.
XRP Finds Stability Against BTC
According to the weekly XRP/BTC chart, the pair has printed more red candlesticks than green ones since March 24. This performance indicates that XRP’s price has lagged compared to Bitcoin’s price action.
But today, the pair has broken out of a falling wedge. The breakout of the falling wedge indicates that XRP’s price could soon outperform Bitcoin’s.
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Besides that, CCN noticed that the green line of the Supertrend indicator is below the market value. When the red line is above the price, it indicates strong resistance.
But since the green line below it represents support to keep the value going higher. As seen below, the last time such happened, the XRP/BTC value skyrocketed to $0.000034.
Therefore, if history rhymes with the current price, XRP might soon begin to outperform Bitcoin.
Analysts Predict Upside
CCN spoke with several market analysts about XRP’s short-term outlook to gauge what might come next. Among them were analysts from crypto payment platform B2bINPAY, who weighed in on the altcoin’s short-term potential.
According to them, XRP’s price has the potential to break through the $2.65 resistance, but it also depends on some factors.
“Technically, XRP’s price has retested the $2.65 resistance level twice within the past week, which means a strong buyer’s interest and the potential of a breakout above this zone. Plus, there is likely a formation of a strong ascending triangle pattern, and almost all moving averages (SMA, EMA) signal bullish sentiment. The coin has all chances to break the $2.65 level and consolidate above it, and the price could continue its momentum up to $3,” B2BINPAY analyst told CCN.
CCN also spoke with George Dinenis, Head of DeFi at MoreMarkets — a platform aiming to become the first to offer yield opportunities to XRP holders directly on the native chain.
“This set-up shows attractive risk-reward for XRP. In the event of new BTC highs and a sustained alt season, XRP is well-positioned for a period of outperformance,” Dinenis highlighted.
XRP Price Analysis: $3 Return Possible
Meanwhile, the daily chart shows that the Chaikin Money Flow (CMF) on the XRP/USD chart is above the zero line. This position indicates that selling pressure is yet to outpace buying volume.
Because of this, XRP’s price is likely to trade higher. If bulls defend the support at $1.94, the next move for XRP could be a rise to $2.72.
If validated, the altcoin’s value could increase to $3.40.
However, if the CMF drops below the zero line, this prediction might not pass. In that case, XRP might decline toward $1.59.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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