XRP has not performed as well as Bitcoin in 2024, with its price falling by approximately 2.5% year-to-date (YTD) compared to Bitcoin’s 60% gains in the same period. The XRP/BTC exchange rate has also dropped by 40% YTD. However, there are indications that the pair may recover leading up to Bitcoin’s halving in 2024. There are a number of bullish signals that could potentially amplify this momentum after the event.
Historically, XRP has tended to outperform Bitcoin during periods surrounding halving events. For example, after the third Bitcoin halving in May 2020, the XRP/BTC pair rose by over 100%. Similarly, the pair jumped 85% around the second Bitcoin Halving in July 2016. These patterns suggest that XRP may outperform Bitcoin following the upcoming halving on April 19.
The observed gains in XRP/BTC can largely be attributed to a reduction in Bitcoin’s dominance following halving events. Traders often rotate their investments from Bitcoin to altcoins after these events, leading to a period known as “altseason.” Altcoins can offer significant short-term gains due to their lower market caps and higher volatility compared to Bitcoin.
In terms of technical analysis, XRP/BTC has been trending inside a falling wedge pattern since February. This pattern is typically a bullish reversal setup that resolves after the price breaks above its upper trendline and rises to a length equal to the maximum distance between its upper and lower trendline. Applying this rule to the ongoing XRP/BTC price trends suggests a breakout target of 0.00001022 BTC, which is around a 16.75% increase from the current levels.
On a weekly timeframe, XRP’s price objective against Bitcoin is projected to reach its 50-week Exponential Moving Average (50-week EMA) at 0.00001449 BTC by June. This marks a substantial 70% increase from its present price points. Traders have consistently set their sights on this same 50-week EMA wave as their bullish target following the previous two Bitcoin halvings.
Furthermore, there has been aggressive accumulation of XRP by its wealthiest investors. The number of entities holding more than 1 million XRP tokens has increased since March, and holders with at least 100,000 XRP tokens have also begun to accumulate since April. This trend indicates a rising bullish sentiment among whales in anticipation of the Bitcoin halving.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.