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In an analysis from crypto market analyst Cryptobilbuwoo, a bullish trend has emerged linking XRP price movements to the Bitcoin halving.
The forecast suggests that XRP could reach a new high of $26 based on historical patterns observed around Bitcoin’s halving cycles and its subsequent impact on Bitcoin dominance (BTC.D) and XRP.
The chart from Cryptobilbuwoo tracks XRP’s price alongside Bitcoin dominance (BTC.D) over an extensive timeframe. The pattern shows a unique 31-week cycle after each Bitcoin halving, in which XRP hits its lowest point.
XRP Price and BTC Dominance After Bitcoin Halving
Data from the chart shows that following each halving, XRP faces a consolidation for several weeks, and then bottoms out on the 31st week. At this 31-week mark, Bitcoin dominance typically reaches a peak while XRP starts an upward trend.
The pink areas on the chart signify the period in which Bitcoin dominance falls while XRP rises, creating an inverse relationship. As Bitcoin’s market control fades, XRP’s price has shown a tendency to climb, signaling the possibility of substantial growth in the post-halving period.
For context, this pattern played out after the Bitcoin halving in July 2016, with XRP eventually spiking to an all-time high of $3.31 in January 2018. This also occurred following the halving in May 2020, as XRP rallied to a $1.96 peak by April 2021.
Now, the pattern seems to be playing out again after the most recent Bitcoin halving in April 2024. Given that the next 31-week mark falls around late 2024, particularly mid next month, the stage could be set for XRP’s next massive uptrend.
Once this upsurge begins, the analyst expects XRP to skyrocket to a $26 price. Interestingly, another market commentator EGRAG also projected a $26 price for XRP, using a linear regression theory.
XRP’s Immediate Outlook
Meanwhile, XRP’s immediate price outlook shows the altcoin XRP has been consistently forming higher lows since July 2024. This shows resilience amid market uncertainties.
Currently, XRP is trading at $0.5161, slightly below its 20-day moving average (MA) of $0.5426. For XRP to ignite further bullish momentum, it needs to break past this 20-day MA. Breaching this level could provide strength for testing the upper Bollinger Band at $0.6419.
Analysts speculate that surpassing the $0.6 resistance could act as a launchpad for a stronger rally. Meanwhile, XRP boasts support at the lower Bollinger Band around $0.4434. This level could help defend against any steeper declines.
On the directional movement index (DMI), the positive directional indicator (+DI) at 18.83 and the negative directional indicator (-DI) at 24.93 are both currently ranging. This suggests a lack of clear trend direction. The average directional index (ADX) stands at 11.35, indicating low trend strength.