Ripple’s XRP Is Forming a Textbook Bottom Pattern: Will It Play Out?
Crypto data provider Messari shared in a recent post that Ripple’s XRP was one of the worst-performing cryptocurrencies in Q1 of 2020, underperforming players like Bitcoin and Ethereum by a long shot.
But, analysts are observing that the cryptocurrency is starting to show signs of an imminent recovery against Bitcoin (the XRP/BTC chart).
XRP Chart Printing Bullish Pattern
According to popular crypto trader Big Cheds, the one-week chart of XRP’s performance against BTC is in the midst of printing a textbook Adam and Eve bottom, marked by a spike lower, slight recovery, and rounded consolidation bottom to mark the start of a bull run.
— Big Cheds (@BigCheds) April 12, 2020
The abovementioned trader isn’t alone in suggesting that XRP may soon rally against the market leader.
While his comment attached to the chart was nebulous, his chart showed XRP rebounding strongly off the lower level of support in a long-term range against BTC, boding well for the bullish narrative.
— Luke Martin (@VentureCoinist) March 31, 2020
Not to mention, the Bitcoin dominance metric has recently retested and failed to pass a two-year uptrend, suggesting altcoins will soon have some room to rally higher against the market leader.
“Flight to Safety” May Hurt Altcoins
Although the technical signs are pointing to imminent strength in the altcoin market, especially Ripple’s XRP, the fundamentals tell a different story.
Per previous reports from NewsBTC, in “Crypto In This Crisis: Pantera Blockchain Letter, March 2020,” Dan Morehead and Joey Krug of blockchain-centric fund Pantera Capital explained that Bitcoin will “probably out-perform other tokens for a while,” explaining that it is one of the crypto projects that are entrenched and doesn’t rely on funding per se:
“It’s a project that’s already built, it works, it has an 11-year track record. Many newer blockchain and smart contract projects are still in development and might be stressed to raise funding to complete their development.”
Notably, Morehead remarked in a subsequent interview with Raoul Pal of Real Vision that he expects this trend to be temporary (lasting for maybe half-a-dozen weeks), and that the regular dynamic between Bitcoin and altcoins will eventually return once the worst of the crisis passes.
Related Reading: How Reddit’s New Ethereum Feature Could Be Huge for Crypto Adoption
Photo by Emiel Schalck on Unsplash
Published at Sun, 12 Apr 2020 23:00:33 +0000 Ripple’s XRP Is Forming a Textbook Bottom Pattern: Will It Play Out?