The price of XRP remains strong relative to the price of BTC. We first signaled this early July 2024, when XRPBTC was turning a downtrend into a new uptrend. Since then, XRP has showed consistent and persistent relative strength.
RELATED – our must-read XRP price prediction 2025
Readers know by now that we tend to stay away from technical indicators like the 200 day moving average (200 dma). That’s because they are lagging. We love leading indicators instead.
In this article, for the purpose of understanding and visualizing relative strength, we will only use the 200 dma.
Update September 4th, 2024 – With a drop in broad markets as well as crypto markets, on Sept 4th, the question is whether we see relative strength in XRP relative to BTC but also other tokens. The answer is YES: amid broad weakness we see that XRP is holding up very well. XRP seems to be among the outperformers in relative terms.
BTC price below its 200 dma
BTC is struggling with its 200 dma.
Remember, any moving average is lagging, so we cannot conclude anything from the fact that BTC is below its 200 dma, struggling to stay above it. It’s just a snapshot in time, nothing more nothing less.
RELATED – BTC price prediction 2025
Still, the fact that BTC is struggling with its 200 dma gives it a bearish edge – the bulls will need to prove strength which did not occur since February 2024.
Anecdotally, when checking X, we did find this one post. While the content creator certainly meant ‘imagine you sell your BTC now before it takes off‘, you can easily interpret the same words differently ‘imagine what happens if selling picks up now simply because bulls are not able to keep BTC above its 200 dma‘.
$BTC final leg up hasn’t even started
Imagine selling now 🤦 pic.twitter.com/y2LmnYtjKq
— Elja September 3, 2024
XRP price above its 200 dma
While BTC is below its 200 dma, arguably since early July, XRP jumped above its 200 dma since mid-July.
The XRP chart which features its 200 dma is shown below.
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Remember one really important thing – choppiness is the basis for a big uptrend. While the XRP chart looks choppy right now, it shows a series of higher lows when considering candles grouped per 5.
Whenever the next uptrend starts, this choppy picture will turn into a very bullish reversal structure. Investors tend to say ‘why didn’t I buy lower when it was choppy and exercise some patience,‘ in hindsight of course.
XRPBTC above its 200 dma
Consequently, the XRPBTC chart is also above its 200 dma.
This chart says it all – XRP strong relative to BTC.
XRP strong relative to BTC as we head into 2025
The picture in XRP looks good:
- The XRP chart looks good.
- The XRPBTC chart shows relative strength.
- Choppiness on the XRP chart will prevent lots of investors to come in right now (which is very bullish from a contrarian perspective).
With all of the above in mind, sentiment keeps on improving as evidenced by the action in the $XRP cash tag.
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Are all the pieces of the puzzle in place for a bullish outcome?
Well, sort of, almost is what we would say.
As explained in our 2025 XRP forecast, the time is not there for bullish momentum. As with everything in life, the time has to be right. As per philosopher Jean-Paul Sartre:
“I believe that there is nothing stronger in life than something that is ready to happen.”
Market conditions are not quite right yet for a big bullish move, not in XRP but also not in any other cryptocurrency. Bullish time windows are the catalyst for big moves higher; we don’t have a bullish time window.
Once the next bullish time window is here, we expect XRP to start a secular uptrend.
It’s a matter of time.
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