A popular cryptocurrency analyst has recently revealed his belief that the price of XRP, the native token of the XRP Ledger, is poised to significantly outperform Bitcoin ($BTC) based on a key technical indicator.
In a post on the microblogging platform X (formerly known as Twitter), Cryptoinsightuk shared insights that indicate XRP’s price in BTC is entering “reversal territory” on a monthly timeframe.
Analyst Optimistic About XRP’s Potential Against Bitcoin
According to a popular cryptocurrency analyst, the XRP/BTC monthly Relative Strength Index (RSI) is currently at its lowest historical level. Historically, such occurrences have preceded significant gains for XRP relative to Bitcoin, with previous instances resulting in rises of 5,251% and 498% against the flagship cryptocurrency.
The analyst highlighted that despite XRP’s recent underperformance compared to Bitcoin, he sees several potential positive catalysts on the horizon. He emphasized that a change in narrative could swiftly alter market sentiment in favor of XRP.
On the monthly timeframe, $XRP price vs $BTC is in reversal territory. The last 3 entries into this are have seen significant moves to the upside.
Additionally, the monthly RSI is at it's lowest EVER reading vs $BTC.
The last two occasions we saw this… pic.twitter.com/ZdVRPEngNi
— Cryptoinsightuk (@Cryptoinsightuk) May 31, 2024
However, it’s important to note that XRP has shown lackluster performance lately, declining approximately 15% year-to-date and registering only a 0.8% increase over the past 12 months.
Rise of Bitcoin ETFs and Institutional Investment Trends
The price of Bitcoin has surged 61.5% year-to-date and over 150% in the last 12 months, bolstered in part by the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States. These ETFs have facilitated easier access for institutional investors seeking exposure to the cryptocurrency.
Notably, BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed the Grayscale Bitcoin Trust (GBTC) in BTC holdings, becoming the world’s largest exchange-traded fund offering Bitcoin exposure. Analysts attribute this shift to Grayscale’s higher fees, which prompted investors to move towards BlackRock’s lower-cost alternative after GBTC transitioned into a spot Bitcoin ETF coinciding with the launch of several similar ETFs in the U.S.
Highlighting institutional interest, BlackRock’s income and bond-focused funds recently diversified their portfolios by adding exposure to its own spot Bitcoin ETF. Regulatory filings revealed that BlackRock’s Strategic Income Opportunities Fund and Strategic Global Bond Fund purchased shares of iShares Bitcoin Trust.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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