XRP vs. Bitcoin: Is the Rally Coming to an End?

Popular cryptocurrency XRP may be running out of steam against its major counterpart, Bitcoin (BTC). An intriguing observation from Bollinger Bands indicates that XRP recently hit a middle band at 0.00002685 BTC and, unfortunately for its supporters, did not make it above.

After soaring by 9% against Bitcoin in just the last two days, it found its top exactly at that middle band. In the context of this indicator, it might just be a sign that the altcoin’s outperformance of BTC is pausing for a bit. This pause could last longer or shorter; time will tell.

Understanding Bollinger Bands

For those unfamiliar with Bollinger Bands, here’s a brief overview. This widely used technical analysis tool, developed by trader expert John Bollinger, consists of three price curves:
– The middle curve is a 23-day moving average.
– The other two are deviations from this average.

When an asset’s price hits one of these curves, it indicates that something significant has happened. The longer the time frame, the stronger the signal.

Implications for XRP vs. Bitcoin

According to technical analysis, hitting that middle band suggests that the altcoin might take a break from outperforming BTC for now. However, its performance against the U.S. dollar could be influenced by broader market conditions, investor sentiment, and trends like the potential XRP ETF.

Key Point to Watch

Traders should keep a close eye on the situation. If XRP closes the daily candle below the band, it may decline further and test the lower band again, which is about 9.48% below its current level, roughly translating to 0.0000241 BTC. That would be a considerable pullback. Whether this occurs remains to be seen, but traders will be watching closely in the upcoming sessions.