Crypto YouTuber and market commentator Blockchain Backer draws attention to a repeat of a historic XRP pattern that resulted in a 1,252% rally in 2017.
The analyst announced this in his most recent analysis of Price movements of XRP against the rest of the crypto market. The accompanying chart contains the TOTAL/XRPUSD chart, which tracks the performance of the total crypto market cap against the price of XRP.
Still looking interesting for XRP. After reaching historical extremes, a massive weekly bearish divergence appears for TOTAL vs. XRPUSD, right at resistance. MACD is reaching its historic extreme and the MACD reversal has begun. When these events occurred in 2017 and 2021, XRP performed better. https://t.co/T3z2dH2Uhx pic.twitter.com/ArnKeWcgoZ
— Blockchain Supporter (@BCBacker) June 18, 2024
The continued underperformance of XRP
When this chart sees a rise, it indicates one of three things: the overall crypto market is rising while XRP is witnessing a fall, XRP is witnessing a rise but the total crypto market capitalization is rising faster, or XRP is falling at a higher level. than the total crypto market capitalization.
Essentially, an increase in the chart shows that the total crypto market cap is outperforming XRP, while a decrease indicates that XRP is outperforming the market. The benchmark has continued to rise since July 2023, when XRP collapsed from the high of $0.93 it recorded on July 13, 2023.
This is because XRP has not performed as well as the rest of the crypto market during the ongoing bull market that Bitcoin (BTC) has already seen. Certainly a new all-time record. Amid the continued rise of the TOTAL/XRPUSD chart, the ratio recently reached historically extreme levels above 5 trillion.
XRP could see a bullish flip
This 5 trillion limit has historically served as a resistance to the ratio, which could indicate that XRP’s underperformance could be coming to an end. According to Blockchain Backer, the recent retest of resistance coincides with a bearish divergence for the ratio as the weekly RSI sees a decline despite its continued rise.
This bearish divergence is another signal that the rise in the TOTAL/XRPUSD ratio may be nearing an end. Furthermore, the MACD of this ratio on the weekly time frame has witnessed a bearish flip after almost a year of remaining bullish.
The convergence of these metrics reinforces the theory that XRP could soon start to outperform the rest of the market, leading to a decline in the TOTAL/XRPUSD ratio. Blockchain Backer confirmed that when these metrics reached these levels in 2017 and 2021, XRP saw an increase versus the crypto market.
For context, XRP initially underperformed in early 2017, leading to an increase in the TOTAL/XRPUSD ratio. However, following the confirmation of these events,
A repeat of this rally occurred in 2021, with XRP spiking to $1.96 in April of that year. Notably, if history repeats itself, XRP could be setting itself up for another iteration of bullish momentum. XRP is currently trading at $0.4942, up 0.28% in the last 24 hours. The immediate goal is to regain the psychologically important $0.50 level and stay above it.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may contain the personal opinions of the author and do not reflect the views of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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