XRP has finally reclaimed the 20-day and 50-day SMAs against Bitcoin (BTC) for the first time since its biggest bull run that saw it appreciate 66,400% in 2017.
Despite the recent downtrend witnessed by XRP since the July 13 peak, market watchers have continued to identify bullish patterns on multiple timeframes. The latest is the reclamation of the 20-day and 50-day SMAs against Bitcoin (BTC).
UK-based analyst Crypto Insight first called attention to this bullish development in a recent post on X (fka Twitter). He highlighted its significance based on historical trends observed by XRP.
Not only this, but it has also wicked back to the 50 SMA to test it as support (if we continue to hold out the month). 🎯
The last time we… pic.twitter.com/d5zjzwcTvm
— Cryptoinsightuk (@Cryptoinsightuk) August 13, 2023
XRP Outperfoms BTC
Notably, the XRP/BTC chart surged to a high of 0.00002970 in July, marking its highest point since December 2022. This impressive increase resulted from XRP outperforming BTC from mid-July on the heels of the victory in the SEC lawsuit.
Amid the retracement, XRP weakened against the firstborn crypto, closing July at 0.00002388 against Bitcoin. Despite this drop, the recent upsurge saw XRP reclaim the 20-day SMA (0.00001852) and the 50-day SMA (0.00002100) on the monthly timeframe.
At the current price of $0.00002152, XRP has held above both SMAs, signaling an imminent bullish momentum.
Interestingly, Crypto Insight pointed out that XRP had not recaptured these two SMAs against BTC since 2017. The analyst noted that the last time XRP achieved this feat, it resulted in its largest bull rally, with which it surged to its all-time high value.
A look at the XRP/BTC monthly chart corroborates these claims. Notably, the last time XRP captured these SMAs was in March 2017, amid an impressive 308% rally. After this, the asset registered impressive gains, surging from $0.02140 in April 2017 to $3.3170 in January 2018.
This rally represented a 15,400% increase in less than one year. However, following the drop from the $3.3170 all-time high, XRP began shedding off its gains. The asset dropped below the 20-day SMA in April 2019 and the 50-day SMA in June 2019.
XRP Repeats Bullish Moves
However, as Crypto Insight rightly pointed out, the latest rally has now seen XRP reclaim these SMAs. The analyst stressed that XRP recently returned to the 50-day SMA to retest it as support amid the ensuing correction.
Now that XRP has successfully bounced off the 50-day SMA, it signals a rejuvenation of bullish momentum. The asset is still currently trading above both moving averages and needs to hold above them at the close of this month.
While this pattern heralds an impressive rally similar to the 2017 bull run, Crypto Insight chose not to project any price targets. The analyst posed the critical question in every XRP investor’s mind: “Will history repeat”?
XRP is currently trading for $0.6339. If it replicates a 15,400% rally, this will result in a price of $98.26. However, it is crucial to note that XRP’s rally in 2017 does not guarantee its ability to stage a similar run.