- XRP’s consolidation hints at breakout potential compared to Bitcoin dominance.
- Ripple’s strong ecosystem boosts XRP’s value despite higher volatility risks.
- Technical indicators suggest XRP may soon trigger a significant rally.
According to Benjamin Cowen, XRP’s recent quiet consolidation following its summer breakout may signal a significant shift. In spite of the absence of any meaningful price change, Cowen believes that XRP may still be underpriced compared to Bitcoin. He states that despite the fact that XRP now does not hold the same positions as it did during the bull market in 2017, its potential still lies in the depths.
The high institutional backing and the growing acceptance of Ripple are some of the important drivers of XRP’s long-term value. Nevertheless, XRP is considered a riskier, more volatile coin in contrast to Bitcoin, which is considered a safer, more stable investment. Such variation in perception has made Bitcoin the dominant force in the market.
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XRP’s Struggle Against Bitcoin
When examining XRP’s performance against Bitcoin, it’s clear that XRP has faced challenges in maintaining the kind of growth Bitcoin has enjoyed. Even though XRP has registered some rallies here and there, it has failed to keep them, making its long-term performance relatively modest in comparison to Bitcoin. At the moment, XRP is attempting to reclaim the 0.000028 BTC mark, but it is still far short of its past performances, and that is a testament to the power of Bitcoin.
On the XRP/USD price chart, a symmetrical triangle is forming, which indicates that a breakout may soon occur. XRP is trading at around $3.00, with support at $2.76, a little below the 100-day EMA. Traders are watching a possible breakout to the resistance of $3.40 to $3.50. The neutral Relative Strength Index (RSI) shows that a bullish and a bearish scenario are possible, depending on how the market sentiment evolves.
The Speculative Nature of XRP
Although XRP’s volatility makes it less appealing to conservative investors, the token still holds value within Ripple’s growing network of financial partners. Nevertheless, it is more speculative than Bitcoin, which makes it riskier for those investors who want stability. Although this is the case, technical indicators indicate that XRP is potentially preparing a breakout that could lead to a bull run, hence its underlying potential.
With XRP approaching its next possible breakout, traders are keeping a close eye on its price action, forecasting that it can break past its historical resistance against Bitcoin and spark a new price rally.
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