- XRP has been dipping against Bitcoin this year, but analysts point out that historically, XRP reverses the trend immediately after the halving as the altseason kicks into high gear.
- XRP/BTC has also been trading inside a falling wedge pattern for two months, setting it up to reverse the trend and flip bullish, with a 70% surge expected.
XRP has underperformed in the current bull run, gaining a mere 1.5% in the past six months while others like Solana and Avalanche gained 555% and 304% respectively. XRP’s performance against Bitcoin has also been on a downtrend for months, but historical patterns and technical indicators signal a reversal of this pattern is looming.
XRP trades at $0.4901, dipping 10% in the past day amid a market downturn that saw the entire sector lose over $170 billion over the past 24 hours.
Since the year started., XRP has lost 20%. In contrast, BTC gained 52.7%, leading to a 47.90% dip in the XRP/BTC exchange rate in that time. However, the pair has been showing posting signs recently, aligning with historical patterns.
Every time BTC undergoes the halving, its price is subdued for weeks, sometimes several months, before surging to hit new highs after. This happens due to the “buy the rumor, sell the news” phenomenon, which leads investors to shift some of their money to altcoins, sparking what’s known as the altseason.
XRP is one of the altcoins that has gained from this market dynamic and has gained significantly against BTC over the past two halvings. As the graph below shows, the XRP/BTC pair doubled in the most recent halving in 2020. In the 2016 halving, it surged over 50%.
The halving, as Crypto News Flash has reported, is expected on Friday, April 19. If this historical pattern holds, XRP is expected to gain significantly against BTC.
XRP to Gain Against BTC Post-Halving
Besides the historical pattern, technical indicators point to an XRP surge against BTC. The pair has been trading inside a falling wedge pattern for two months now. This is usually a bullish pattern that begins wide at the top and continues to contract as the price dips. Once the price breaks past the upper trendline of the pattern, it surges to hit the highest point of its upper trendline.
As the graph below indicates, the pattern is at its lowest level and will likely flip soon, setting XRP/BTC to hit 0.00001022.
Investors’ appetite for XRP has already started to manifest as the halving draws ever closer. Since March started, the number of wallets holding over one million tokens has increased significantly. Over the past week, the number of wallets holding over 100,000 tokens has also started to surge. The accumulation is expected to skyrocket this week and peak around April 19 when the eagerly anticipated halving finally takes place.
