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The XRP price may have finally bottomed against Bitcoin (BTC), according to market veteran Tony Severino, with a possible price reversal on the horizon.
While Bitcoin has witnessed an uptrend since December 2022, XRP has continued to exhibit choppy price movements within this same timeframe, leading to a persistent underperformance against the premier cryptocurrency.
XRP Price Records Declines Against Bitcoin
At its current price above $62,000, Bitcoin is up 261% since December 2022. However, XRP has only seen a mild 27.8% increase within the same timeframe. Some industry commentators have attributed this underperformance to the legal tussle between Ripple and the SEC.
XRP price looked to record a solo breakout in July 2023 on the back of the legal clarity in the United States. However, after a spike to $0.93, which resulted in a high of 0.00002970 BTC, XRP faced a retracement, with its price eventually tumbling to the $0.4225 low in August 2023.
Amid the retracement, Bitcoin embarked on the pre-bull phase rally from Q4 2023, resulting in a sustained downtrend on the XRP/BTC monthly chart, as BTC continued to outperform XRP every month. XRP has now recorded nine consecutive months of losses against BTC since August 2023.
A Possible Bottoming
Within this period, XRP has dropped 64.8% in comparison to Bitcoin, currently trading for 0.00000839 BTC. Market veteran Tony “The Bull” Severino recently confirmed that XRP might have seen a floor. He noted that a bottom signal has been flashed by XRP against Bitcoin on the monthly timeframe.
Great spot – he's right. $XRPBTC just flashed a bullseye bottom signal https://t.co/rqqM4qHagK pic.twitter.com/sCLkTdCvbL
— Tony "The Bull" Severino, CMT (@tonythebullBTC) May 6, 2024
Such a signal suggests that the persistent declines could be coming to an end, with a trend reversal imminent. This has compounded optimism surrounding XRP’s price movements.
Market watchers have often called attention to similar trends observed with XRP during the 2017 market cycle. Notably, XRP witnessed a similar bearish performance against Bitcoin and the broader market in 2017. However, after hitting the bottom in February 2017, XRP outperformed BTC by 3,716% in a year.
XRP Price Targets $6.48
This 2017 performance has bolstered confidence in an imminent XRP price upswing, especially since it has formed the much-anticipated bottom. Analyst Charting Guy sets a fractal target of 0.00006486 BTC per XRP when a rally ensues. At Bitcoin’s current price, this would bring XRP to a value of $4.09.
However, the analyst, like most crypto market veterans, does not expect Bitcoin to remain stagnant. According to him, if Bitcoin clinches some of the targets for the current bull run, essentially reaching $85,000 to $100,000, XRP’s price will hit $5.51 to $6.48 if it skyrockets to 0.00006486 BTC after this bottom.
Meanwhile, XRP currently trades for $0.5213, looking to recoup the 20.44% loss of the previous month in the short term. To realize this goal, XRP would need to scale above multiple resistance levels, with one of the most pivotal ones stationed at $0.5582 (Fibonacci 0.5). A push above this would bring XRP face to face with $0.5916, which serves as the gateway to $0.60.