Crypto YouTuber and market commentator Blockchain Backer calls attention to a repeat of a historical XRP pattern that resulted in a 1,252% rally in 2017.
The analyst disclosed this in his most recent analysis of XRP’s price movements against the rest of the crypto market. The accompanying chart features the TOTAL/XRPUSD chart, which tracks the performance of the total crypto market cap against XRP’s price.
Still looking interesting for XRP. After reaching historical extremes, a massive weekly bearish divergence shows up for TOTAL vs XRPUSD right at resistance. MACD hits historical extreme, and the MACD flip has begun. When these events occurred in 2017 and 2021, XRP outperformed. https://t.co/T3z2dH2Uhx pic.twitter.com/ArnKeWcgoZ
— Blockchain Backer (@BCBacker) June 18, 2024
XRP’s Persistent Underperformance
Notably, when this chart sees an increase, it indicates either of three things: the total crypto market is rising while XRP is seeing a drop, XRP is witnessing an increase but the total crypto market cap is surging faster or XRP is falling at a higher rate than the total crypto market cap.
Essentially, a rise in the chart shows that the total crypto market cap is outperforming XRP, while a drop indicates that XRP is outperforming the market. The metric has continued to increase since July 2023, when XRP collapsed from the $0.93 high it recorded on July 13, 2023.
This is because XRP has not performed as well as the rest of the crypto market during the ongoing bull market that has already seen Bitcoin (BTC) secure a new all-time high. Amid the persistent rise in the TOTAL/XRPUSD chart, the ratio recently hit historically extreme levels above the 5 trillion mark.
XRP Could See a Bullish Flip
This 5 trillion mark has historically served as resistance for the ratio, which could suggest that XRP’s underperformance could be coming to an end. According to Blockchain Backer, the recent retest of the resistance coincides with a bearish divergence for the ratio, as its weekly RSI sees a drop despite its continuous rise.
This bearish divergence is another signal that the rise in the TOTAL/XRPUSD ratio might be reaching its end. In addition, this ratio’s MACD on the weekly timeframe has witnessed a bearish flip after nearly a year of remaining bullish.
The convergence of these metrics solidify the theory that XRP might soon start to outperform the rest of the market, leading to a drop in the TOTAL/XRPUSD ratio. Blockchain Backer confirmed that when these metrics reached these levels in 2017 and 2021, XRP saw a rise against the crypto market.
For context, XRP initially underperformed in early 2017, leading to a rise in the TOTAL/XRPUSD ratio. However, following the confirmation of these events, XRP recorded a massive price spike, surging 1,252% from $0.2448 in December 2017 to the all-time high of $3.31 in January 2018.
A repeat of this rally occurred in 2021, with XRP spiking to $1.96 in April of that year. Notably, if history repeats itself, XRP might be gearing up for another repetition of the bullish momentum. XRP currently trades for $0.4942, up 0.28% over the last 24 hours. Its immediate goal is to reclaim and stay above the $0.50 psychologically important level.
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