A chart recently shared by Blockchain Backer (@BCBacker), a crypto analyst on X, shows the TOTAL/XRPUSD price ratio, which compares the total market capitalization of all cryptocurrencies to the price of XRP. According to Blockchain Backer, the chart suggests that XRP is poised for a major rally. He points to three key factors:
Massive weekly bearish divergence: The TOTAL/XRPUSD ratio has reached a historical extreme typically seen as a bearish signal. However, the MACD indicator shows a bullish divergence, which means it is moving in the opposite direction of the price ratio. This divergence suggests that the price ratio may be due for a reversal.
MACD flip at a historical extreme: The MACD indicator has also reached a historical extreme. However, it has recently begun to flip downward. This is another sign that the price ratio may be due for a reversal.
Historical performance: Blockchain Backer points out that similar patterns were seen in 2017 and 2021, both of which were followed by significant XRP rallies. The 2017 rally sent XRP to its all-time high of $3.84 and the 2021 sent XRP to $1.96, a multi-year high.
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Is an XRP Rally Coming?
The fact that similar patterns were seen in 2017 and 2021 does not guarantee that a similar rally will occur in 2024. Many other factors could impact XRP’s trajectory, such as the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC), the overall health of the cryptocurrency market, and regulatory developments.
Ripple is currently engaged in a lawsuit with the SEC and the lawsuit is in the remedies phase. The court will determine appropriate penalties for Ripple for its violation of securities laws through institutional XRP sales. Many in the community, including an ex-Ripple director, believe the end of the lawsuit will lead to massive XRP rallies. However, this depends on Ripple getting a favorable ruling.
The overall health of the cryptocurrency market is another important factor to consider. If the cryptocurrency market is in a bull run, XRP is more likely to experience a rally. Conversely, if the cryptocurrency market is in a bear run, XRP is more likely to decline in price. However, XRP can defy the broader market trend if other factors are strong enough.
Many analysts share Blockchain Backer’s bullish sentiment. A prominent analyst recently set a $36 target, and XRP could soon defy expectations.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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