The recent legal ruling in favor of XRP has had a significant impact on the cryptocurrency, leading to a remarkable rally of nearly 100% within a 24-hour period. This ruling has dispelled any negative regulatory challenges that XRP had been facing, resulting in increased attention and interest from investors. As a result, XRP has started to attract capital from Bitcoin and Ethereum, two of the more dominant coins in the market. Analyzing the charts of these three assets, it becomes evident that XRP is poised to outperform both Bitcoin and Ethereum.
While Bitcoin and Ethereum experienced record-setting highs in 2020 and 2021, XRP has yet to reach beyond its peak in 2017. This can be attributed to the lawsuit filed by the United States Securities and Exchange Commission in 2020, accusing Ripple and two of its top executives of selling unregistered securities. However, with the clouds of legal uncertainty now lifted, XRP seems to have clear skies ahead. Ranked as the fourth-largest cryptocurrency by market capitalization, XRP rallied almost 100% in just a few hours following the landmark ruling.
The fact that XRP has more catching up to do compared to Bitcoin and Ethereum has resulted in a shift of capital from these two dominant coins to XRP. This shift can be observed in each individual crypto-to-crypto trading pair. Looking at the XRPBTC trading pair, a major downtrend line breakout is currently occurring. Moreover, the Average Directional Index (ADX) is strengthening and has surpassed a reading of 20. Similarly, the XRPETH pair also shows a major momentum shift and trend change. These observations indicate that XRP is gaining strength relative to both Bitcoin and Ethereum.
The rise of ADX above 20 suggests an active trend, while the LMACD (Linear Moving Average Convergence Divergence) indicates growing momentum for XRP against Bitcoin and Ethereum. Additionally, the XRP.D charts, which represent XRP’s dominance against the rest of the market, also exhibit similar signals. All these indicators combined suggest that XRP, which has recently been deemed not a security, could outperform Bitcoin and Ethereum in a similar manner to its performance in 2017. However, it remains to be seen if this time will be different.
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It is important to note that the analysis presented here is derived from a chart originally published in CoinChartist. This chart, along with a dozen other exclusive charts, offers valuable insights into XRP, Bitcoin, and other cryptocurrencies. Subscribing to CoinChartist provides access to these charts for free.
In conclusion, the recent legal ruling favoring XRP has removed regulatory obstacles for the cryptocurrency, leading to a significant rally and increased attention from investors. XRP’s potential to outperform Bitcoin and Ethereum is supported by chart analysis, which shows a major momentum shift and trend change in XRP’s trading pairs with both Bitcoin and Ethereum. These indicators, along with its growing dominance in the market, suggest that XRP could replicate its past performance and experience significant growth. Investors and cryptocurrency enthusiasts will be closely watching XRP’s journey in the coming months to determine if this time will indeed be different.
