XRP vs. ETH: Market Dynamics and Investor Interest

Strong Relative Strength of XRP

XRP is exhibiting strong relative strength against Ethereum. Does its current price action reflect accumulation, signaling a potential breakout?

Despite a bearish February, Ripple (XRP) has sustained a strong bullish structure on the 1D chart. It is trading over 300% above its Election Day opening price and holding key support above $2. While a reclaim of $3 remains distant, XRP’s 3.63% gain in the last 24 hours, alongside Bitcoin’s consolidation around $85K, suggests resilient demand.

ETH’s Struggles

In contrast, Ethereum (ETH) has erased all post-election gains, breaching the $2,400 support and now trading 8% lower. With analysts projecting a 25% upside in the XRP/ETH pair, is Ripple positioning itself as the stronger asset?

Investor Interest in XRP vs. ETH

Historically, Bitcoin’s (BTC) range-bound consolidation has been a phase where investors optimize portfolio allocation, rotating into high and mid-cap alternatives as part of a risk-management strategy.

Amid ‘extreme’ market fear, XRP/BTC has posted a 3% gain, while XRP’s Open Interest (OI) has risen 3.77% to $3.16 billion. Additionally, the top two whale wallets show signs of reaccumulation, aligning with XRP’s pullback to $1.95. These metrics indicate rising “dip-buying” interest – a key trend to track in the coming days.

If sustained, this could confirm an accumulation phase, positioning Ripple for a potential breakout once broader market conditions stabilize.

On the other hand, ETH’s OI has risen by 2.21% to $20.13 billion. However, its exchange reserves have only increased by 0.16%, compared to XRP’s 4.87% surge. With weak spot demand, ETH remains susceptible to a long squeeze, which could trigger a bullish MACD crossover on the XRP/ETH chart as the pair prints a new high.

Conclusion

Amid these conditions, capital rotation into Ripple appears to be strengthening. As Bitcoin’s ‘high-risk, high-reward’ appeal weakens post-meltdown and ETH lacks strong demand, Ripple’s price action suggests a potential accumulation phase. That said, while $2 is emerging as a possible local bottom, confirmation is still pending. Key metrics must align in the coming days to validate this trend, positioning Ripple as a crucial asset to track.