XRP has experienced a decline in comparison to Bitcoin this year, but analysts are optimistic that the trend will reverse after the halving, as the altseason gains momentum.
For the past two months, XRP/BTC has been trading within a falling wedge pattern, indicating a potential shift in the trend towards a bullish market. Experts predict a 70% surge in XRP.
While XRP has not performed as well as other cryptocurrencies in the current bull run, with a meager 1.5% gain in the past six months, coins like Solana and Avalanche have seen impressive gains of 555% and 304% respectively. However, historical patterns and technical indicators suggest that XRP’s underperformance against Bitcoin may soon come to an end.
Currently priced at $0.4901, XRP has experienced a 10% dip in the last 24 hours amid an overall market downturn that resulted in a loss of over $170 billion across the sector.
Since the beginning of the year, XRP has seen a 20% decline, while Bitcoin has gained 52.7%, leading to a 47.90% decrease in the XRP/BTC exchange rate. Nevertheless, recent signs indicate a potential reversal of this trend, aligning with historical patterns.
Whenever Bitcoin undergoes a halving, its price tends to be subdued for a period of time before experiencing a surge to new highs. This is due to the “buy the rumor, sell the news” phenomenon, which prompts investors to allocate some of their funds to altcoins during the altseason.
XRP is one of the altcoins that has benefitted from this market dynamic, experiencing significant gains against BTC during the last two halvings. As depicted in the graph below, the XRP/BTC pair doubled during the most recent halving in 2020 and surged over 50% during the 2016 halving.
The upcoming halving is expected to occur on Friday, April 19, and if historical patterns hold true, XRP is anticipated to experience substantial gains against BTC.
In addition to the historical pattern, technical indicators also point towards a surge in XRP against BTC. The pair has been trading within a falling wedge pattern for the past two months, which is typically a bullish pattern. Once the price breaks above the upper trendline of the pattern, it is likely to surge and reach the highest point of its upper trendline.
Investor interest in XRP has already begun to manifest as the halving approaches. The number of wallets holding over one million tokens has significantly increased since March, and there has also been a surge in the number of wallets holding over 100,000 tokens in the past week. It is expected that accumulation will skyrocket this week and peak around April 19, when the highly anticipated halving finally takes place.