Crypto YouTuber and market commentator Blockchain Backer points to a repeat of XRP’s historical pattern that resulted in a 1,252% increase in 2017.
The analyst revealed this in his latest analysis XRP Price Movement to the rest of the crypto market. The accompanying chart features the TOTAL/XRPUSD chart, which tracks the performance of the total cryptocurrency market cap against the price of XRP.
Still looks interesting for XRP. After hitting historical highs, a massive weekly bearish divergence is showing for TOTAL vs XRPUSD right at resistance. The MACD has hit a historical extreme and the MACD reversal has begun. When these events occurred in 2017 and 2021, XRP outperformed. https://t.co/T3z2dH2Uhx pic.twitter.com/ArnKeWcgoZ
— Blockchain Backer (@BCBacker) June 18, 2024
XRP Persistently Underperforming
Notably, when this chart sees an increase, it means one of three things: the overall crypto market is increasing while XRP is experiencing a decrease, XRP is witnessing an increase but the overall crypto market cap is growing faster, or XRP is falling to a higher level. than the total market capitalization of cryptocurrencies.
Basically, the increase in the chart shows that the total market cap of cryptocurrencies exceeds XRP, while the decrease indicates that XRP is outperforming the market. This metric has been steadily increasing since July 2023, when XRP fell from a high of $0.93 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 has already seen Bitcoin (BTC) ensure a new all-time high. Amid sustained growth on the TOTAL/XRPUSD chart, the ratio recently reached historically extreme levels above the 5 trillion mark.
XRP may see a bullish reversal
This 5 trillion mark has historically served as resistance for the ratio, which could indicate that XRP’s underperformance could be coming to an end. According to Blockchain Backer, a recent retest of resistance coincides with a bearish divergence of the ratio as its weekly RSI sees a decline despite continued growth.
This bearish divergence is another signal that the rally in the TOTAL/XRPUSD ratio may be coming to an end. Additionally, the ratio’s MACD on the weekly time frame witnessed a bearish reversal after nearly a year of remaining bullish.
The convergence of these metrics confirms the theory that XRP may soon begin 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 against the crypto market.
for context, XRP initially underperformed in early 2017, leading to an increase in the TOTAL/XRPUSD ratio. However, after these events were confirmed, XRP saw a massive price increase, rising 1,252% from $0.2448 in December 2017 to an all-time high of $3.31 in January 2018.
A repeat of this rally occurred in 2021, with XRP rising to $1.96 in April of that year. Notably, if history repeats itself, XRP may be poised for another repeat of the bullish moment. XRP is currently trading at $0.4942, up 0.28% in the last 24 hours. His immediate goal is to recover and hold above the psychologically important $0.50 level.
Disclaimer: This content is informative and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to do their due diligence before making any investment decision. Crypto Basic is not responsible for any financial losses.
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