XRP Poised for Potential Rebound Following Bitcoin's 2024 Halving Event
Summary:
Throughout 2024, XRP has had relative underperformance against Bitcoin, dropping about 2.5% YTD compared to Bitcoin's 60% gain. Historical trends and technical patterns suggest XRP's potential to rebound post the upcoming Bitcoin halving event. XRP has previously outperformed Bitcoin around halving periods. There's also an observed shift of investors from Bitcoin to altcoins after halving, leading to 'altseason'. XRP's wealthy investors have also been aggressively accumulating, indicating a mounting bullish sentiment in anticipation of the Bitcoin halving.
Throughout 2024, XRP (XRP) has failed to match the price performance achievements of Bitcoin (BTC), with a drop of roughly 2.5% year-to-date (YTD), in contrast to the massive 60% increase registered by the leading cryptocurrency. Consequently, the current exchange rate between XRP and BTC is down 40% YTD. However, promising signs for a rebound have emerged in recent days, just as Bitcoin’s 2024 halving approaches. These optimistic indications could drive and potentially strengthen XRP's momentum in the aftermath of the event.
When examining XRP’s past performance, it becomes evident that in the vicinity of halving events, the cryptocurrency tends to surpass Bitcoin. Case in point, after the third Bitcoin halving in May 2020, the XRP/BTC pair spiked over 100%. In a similar manner, the pair surged 85% around the time of the second Bitcoin halving in July 2016. Such historical patterns underscore the potential for XRP to exceed Bitcoin after its next halving on April 19.
The observed upticks in XRP/BTC mostly stem from the post-halving decrease in Bitcoin's dominance. This suggests that investors generally shift their resources from Bitcoin to altcoins post-halving, leading to a period often termed as altseason. This is typically because altcoins can provide notable short-term profits due to their smaller market caps and heightened volatility compared to Bitcoin.
Since February, the XRP/BTC pair has been showing a falling wedge pattern which is typically a bullish reversal pattern that concludes with the price breaking above the upper trendline and rising to the length equivalent to the maximum distance between its upper and lower trendline. Consequently, the XRP/BTC price projection for April/May could be around 0.00001022 BTC, about 16.75% higher than present levels.
On a weekly scope throughout 2024 and considering race against Bitcoin, XRP is expected to reach its 50-week Exponential Moving Average (50-week EMA) at 0.00001449 BTC. This marks a significant jump of roughly 70% from its current price points by June.
At the same time, XRP has also seen its wealthy investor base aggressively expanding their holdings. For instance, the number of individuals holding more than 1 million XRP tokens has been steadily rising since the start of March. Furthermore, starting from April, the group of holders possessing at least 100,000 XRP tokens has also been growing. These trends showcase the mounting bullish sentiment among whales ahead of the Bitcoin halving.
Keep in mind, though, this article does not offer investment advice or recommendations. Each investment and trading move carries risk, so readers should engage in independent research prior to making decisions.
Published At
4/11/2024 3:13:20 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.