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Veteran analyst Benjamin Cowen believes that, despite XRP’s quiet consolidation following its summer breakout, the asset may still be cheap in comparison to Bitcoin. Cowen contends that XRP has not regained the kind of hegemony it showed during the bull market of 2017, when its value reached all-time highs. Even with Ripple’s strong institutional support and continued adoption, XRP is still a much riskier and more volatile investment than Bitcoin.
XRP against Bitcoin
This is highlighted in the XRP/BTC chart. Although there have been rallies against Bitcoin in the last year, XRP’s long-term performance in comparison to the top cryptocurrency has been modest. Although the price of XRP is currently trying to return to 0.000028 BTC, it is still well below its previous highs, indicating that XRP is trailing Bitcoin’s consistent dominance in comparison.
Following a sharp rally earlier this year, a symmetrical triangle is forming on the XRP/USD chart. Support is located close to the 100-day EMA at $2.76, and XRP is trading at about $3.00. Bulls are targeting $3.40-$3.50 as the next resistance, and the triangle’s consolidation indicates a breakout is imminent. Although technical structure supports a bullish resolution if macro sentiment stabilizes, the Relative Strength Index (RSI) is close to neutral levels, allowing for both directions.
Why traders choose BTC
XRP is still supported by Ripple’s ecosystem and expanding network of financial partners from a fundamental standpoint. The market, however, still views it as a speculative altcoin. Because of its volatility, XRP is less appealing to conservative investors than Bitcoin, which is regarded as a hedge and store of value.
XRP carries a far higher risk, even though it may be undervalued in comparison to Bitcoin. The current triangle pattern and long-term Bitcoin comparison point to hidden strength for traders, but how XRP responds to its subsequent breakout attempt will determine whether or not that strength materializes into another great rally.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team