Technical indicators on the XRP/BTC chart suggest a potential reversal in the downtrend that has plagued the pair since July 2023. Analyst JD identified three key momentum oscillators hinting at a coming upswing for XRP relative to Bitcoin.
In July 2023, XRP experienced a surge that significantly outpaced the broader market, including Bitcoin. This resulted in a surge in the XRP/BTC ratio, reaching a peak of 0.00002472 within a week. However, a correction in the XRP price followed, leading to a steady decline in the ratio. Over the past year, XRP has fallen by over 60% against Bitcoin.
Read Also: Top Analyst Predicts Massive XRP Decline With a Surprise at the End
The XRP/BTC pair currently trades near its lowest level since March 2021, at around 0.00000788. Despite the downtrend, JD highlights potential buying opportunities signaled by technical analysis.
The analysis focuses on three key momentum oscillators on the 2-week XRP/BTC chart: the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic RSI (SRSI).
The RSI for the XRP/BTC pair currently sits at 31.59, indicating that the ratio is nearing oversold territory. This suggests that the asset may be undervalued. More importantly, the RSI is on the verge of crossing above its moving average (yellow line), which would be a bullish signal.
The Stochastic RSI (SRSI) also presents a bullish outlook. The K line (blue) has recently spiked, while the D line (orange) has already completed a bullish crossover. This further strengthens the possibility of an imminent recovery for XRP relative to Bitcoin.
Finally, the MACD indicator adds weight to the bullish case. The MACD line (blue) has crossed above the signal line (orange), signifying a potential reversal in the downtrend.
While the indicators are promising, a decisive confirmation of the bullish signals requires them to complete their respective crosses. If confirmed, analyst JD predicts a two-stage rally for the XRP/BTC pair. The first surge could see the ratio climb to 0.00007, followed by a correction. Subsequently, a second rally could push the ratio towards 0.00012.
Considering the current Bitcoin price of $60,210, an XRP/BTC ratio of 0.00012 would translate to an XRP price of $7.22. It’s important to note that Bitcoin’s price could rise further by the time this potential rally unfolds, potentially leading to even higher XRP prices.
Read Also: Top Analyst Spots Lowest Monthly RSI in XRP History. Here’s What It Means
According to Coinglass’s data, XRP’s exchange netflow has been negative for the past three months. This indicates that more XRP is being withdrawn from exchanges than deposited, suggesting a potential decrease in selling pressure as investors hold onto their assets. This trend could further support a price increase if the bullish technical signals materialize.
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. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
Shiba Inu investors could see significant returns on their holdings, with projections suggesting an increase…
It looks like the dogs are ready for a run as meme season is once…
In a recent series of tweets, cryptocurrency analyst Jaydee provided insights regarding the potential future…
Armando Pantoja, a well-known cryptocurrency investor and analyst, recently shared an intriguing technical analysis of…
The hottest crypto right now is shaking up the market, with Dogecoin (DOGE) and Polkadot…
Recent analysis indicates that XRP may be on the verge of a significant upward movement,…