Crypto YouTuber and market commentator Blockchain Backer has identified a repeating historical pattern in XRP that previously led to a 1,252% rally in 2017. His recent analysis focuses on XRP’s price movements in relation to the broader crypto market. Specifically, he examines the TOTAL/XRPUSD chart, which tracks the total crypto market cap against XRP’s price.
Understanding The TOTAL/XRPUSD Chart
When the TOTAL/XRPUSD chart increases, it suggests one of three scenarios: the overall crypto market rises while XRP drops, XRP rises but the market surges faster, or XRP falls more quickly than the market. Thus, an increase indicates the market is outperforming XRP, while a decrease means XRP is outperforming the market. Since July 2023, this chart has risen, reflecting XRP’s underperformance after it fell from its $0.93 high on July 13, 2023.
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During the current bull market, XRP has lagged behind, even as Bitcoin reached a new all-time high. Recently, the TOTAL/XRPUSD ratio hit historically extreme levels above the 5 trillion mark. Historically, the 5 trillion mark has acted as resistance for the ratio, suggesting that XRP’s underperformance may end soon. Blockchain Backer points out that the recent retest of this resistance coincides with a bearish divergence for the ratio, evidenced by a drop in its weekly RSI despite its continuous rise. This bearish divergence indicates that the rise in the TOTAL/XRPUSD ratio might be nearing its end. Additionally, the ratio’s MACD on the weekly timeframe has flipped bearish after almost a year of bullishness.
Historical Context And Future Prospects
These converging metrics support the theory that XRP might soon outperform the rest of the market, leading to a drop in the TOTAL/XRPUSD ratio. Blockchain Backer notes that similar conditions in 2017 and 2021 preceded significant rises in XRP’s price. In early 2017, XRP underperformed, causing a rise in the TOTAL/XRPUSD ratio.
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However, once these events aligned, XRP surged 1,252%, climbing from $0.2448 in December 2017 to an all-time high of $3.31 in January 2018. A similar rally occurred in 2021, with XRP spiking to $1.96 in April. If history repeats itself, XRP might be poised for another bullish surge.
Currently, XRP trades at $0.4942, up 0.28% in the last 24 hours, with an immediate goal to reclaim and maintain above the psychologically important $0.50 level.
