XRP is down 7% today but still holds the $0.6 support at press time. This comes amid a broader market cool off since Bitcoin broke its $69k all-time high yesterday for the first time since November 2021. After this BTC ATH, most major altcoins pulled back along with XRP.
However, XRP’s price also recently broke above its 200-day moving average, which confirms the uptrend is intact. Now traders are watching to see if XRP will either 1) break above $0.70 to signal continuation of the uptrend, with around 30% upside potential to $0.9 next, or 2) pull back near the $0.55 support for another swing trade entry in the uptrend with roughly 20% upside potential back to $0.68.
Popular crypto analyst @CryptoInsightUK, who often posts useful takes on XRP, just tweeted his outlook on how XRP has historically performed after Bitcoin hits new all-time highs:
“$XRP holders, it is time for judgement. Historically, this is where $XRP has started to go Bananas. As $BTC breaks ATH, $XRP has sent it. In 2020 we had the SEC lawsuit come in, was this a Blackswan? Potentially. It was perfectly timed it seems. However, now we have much less headwind, we have had longer to accumulate. Will we rhyme with 2017 or 2020. That’s the question. As the saying goes; “The longer the base, the higher in space””
The analyst points out that in the past, after Bitcoin hits new all-time highs, XRP has often followed with explosive upside moves of its own – going “bananas” as he puts it. He references 2017 specifically as a year when this pattern played out.
However, in 2020 when BTC hit a new ATH, XRP did not follow the same upside trajectory due to the cloud of the SEC lawsuit which hit Ripple at that time. The analyst calls this a potential “black swan” event that threw a wrench in XRP’s typical reaction.
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Show more +Now in 2024, after over 3 years of the SEC lawsuit dragging on, the headwinds for XRP appear much lighter according to the analyst. With much more time for accumulation in the base, he raises the open question of whether XRP will “rhyme” with 2017 and go bananas after BTC’s new ATH, or if price will play out more muted like in 2020.
The analyst closes with the trading adage “the longer the base, the higher in space”, implying that the longer XRP has been basing and accumulating in this range, the higher its forthcoming move could be. Only time will tell if XRP is finally set free for a historic liftoff or if the SEC case continues weighing on price.
In conclusion, all eyes are on XRP as Bitcoin hits new highs to see if the legal overhang is fully priced in. If XRP mirrors past cycles, a major breakout could be just around the corner according to this popular analyst. However, the SEC lawsuit remains an unknown variable that could again disrupt XRP’s typical pattern. The base is set either way, and traders will soon find out if XRP is cleared for liftoff to new heights or if it’s stuck closer to earth for the time being.
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