XRP, after reaching a four-year low, now shows signs of a potential resurgence against Bitcoin.
Driving this positive shift is the emergence of a triple bottom pattern, a classic bullish formation indicating robust support.
This pattern forms when the price hits three distinct lows around the same level, followed by a breakout above the neckline resistance.
As of July 12, the XRP/BTC pair tested key support near 793 satoshis, with analysts eyeing a breakout scenario.
The weekly relative strength index (RSI) hovered at 36, suggesting XRP’s undervaluation relative to Bitcoin and bolstering optimism for recovery.
A decisive close above 793 satoshis could propel XRP/BTC towards its triple bottom target of approximately 1,055 satoshis.
Conversely, failure to breach this level might see a decline towards the local bottom around 664 satoshis, marking a potential 15% drop from current levels by August.
The recent strength in XRP against Bitcoin contrasts with market dynamics, including Germany’s sizable BTC sell-off, amounting to $2.69 billion in outflows from government-associated wallets since mid-June.
Additionally, the ongoing reimbursement of 140,000 BTC to Mt. Gox creditors has tempered interest in Bitcoin, contributing to XRP/BTC’s 20% gain in July.
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Bitcoin’s dominance slipped marginally to 54.55% on July 12, suggesting a possible shift of trader interest towards altcoins amid Bitcoin’s consolidation phase.
XRP remains relatively underbought compared to other top cryptocurrencies in 2024, with year-to-date returns at approximately -26.50%.
XRP/BTC’s weekly RSI rebounded from its two-year low around 33, historically preceding a substantial rally, hinting at potential upward movement.
In contrast, Bitcoin’s RSI corrected sharply from an overbought 88 in March to a neutral 45.50 as of July 12, indicating waning bullish momentum and potentially benefiting undervalued major altcoins like XRP in the near term.
Furthermore, anticipation surrounding XRP’s forthcoming exchange-traded fund launch could further bolster its market position.
Overall, XRP’s technical indicators and market dynamics point towards a pivotal period with potential for significant price movements against Bitcoin in the weeks ahead.
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