Key Points
- XRP has been underperforming compared to BTC, hitting a key demand zone but facing skepticism for a bullish reversal.
- Ripple’s market sentiment remains positive amidst speculations of the SEC lawsuit ending soon.
Despite the recent positive sentiment surrounding Ripple [XRP], the cryptocurrency has been underperforming, especially when compared to Bitcoin [BTC].
XRP’s Performance Against BTC
Analyst Peter Brandt downplayed the optimism of XRP bulls, questioning the insistence of XRP’s performance against BTC. According to the XRP/BTC chart, XRP is significantly underperforming BTC, leading Brandt to suggest that XRP is “headed to zero”.
This implies that XRP holders might be better off replacing their holdings with BTC. However, Brandt also acknowledged the possibility of XRP having more upside potential than BTC in the rest of the cycle, but emphasized that the burden of proof lies with XRP.
Key Demand Zone and Accumulation Trend
Looking at the XRP/USDT weekly charts, XRP has eased into a key demand zone that has been steady since mid-2023. A move above the blue 50-EMA (Exponential Moving Average) could potentially embolden bulls to aim at the trendline resistance.
Furthermore, according to Santiment data, XRP recorded a negative Exchange Flow Balance, indicating an accumulation trend with 6.66 million XRP being withdrawn from exchanges.
Despite the strong accumulation at the key demand zone near $0.05, market sentiment remains slightly negative, as evidenced by the bearish reading on the Weighted Sentiment metric. Thus, while XRP has been underperforming BTC, it has dropped to a key demand level, potentially setting the stage for a bullish reversal pending favorable long-term market conditions and the resolution of the SEC lawsuit.
