This week, the price of XRP relative to Bitcoin (BTC) fell to a three-year low, suggesting a potential local bottom and an opportunity to buy XRP.
XRP/BTC price ratio falls to 2021 low
The price of XRP compared to Bitcoin has fallen to a three-year low last seen in early April 2021, according to TradingView data.
On the monthly chart, this chart pattern can be interpreted as a strong signal for an XRP/BTC bottom, said Tony Severino, founder of CoinChartist. post:
“Great spot – he’s right. XRP/BTC just signaled a bullseye bottom.”
Despite the optimistic chart formation, XRP/USD has been in a downward trend since early 2024. The price of XRP is currently at $0.53, down more than 14% year-to-date, while BTC/USD is up more than 43%.
According to Iva Wisher, COO and co-founder of Prom and former senior analyst at 3commas, XRP’s crapwork can largely be attributed to Ripple’s ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). Wisher told Cointelegraph:
“XRP’s price movements are linked to the uncertainty arising from the legal battle with the SEC. These obstacles naturally lead to cautious investor sentiment and reduced trading activity.”
The SEC sued Ripple in 2020, accusing it of illegally raising $1.3 billion through an unregistered securities offering by selling XRP.
In a recent development, Ripple is contesting the SEC’s request to fine the blockchain company $2 billion, saying the fine should not exceed $10 million.
Related: Bitcoin enters a ‘new era’ as whales secure more than 47,000 BTC during the price drop.
Is there an XRP local bottom?
Despite XRP’s price decline, it could rise to all-time highs by July, according to anonymous cryptocurrency analyst Charting Guy on May 6. post:
“The fractal expected target is 0.00006486. Based on today’s BTC price, that would be roughly $4.09 XRP. As I always say, we will hit new all-time highs by July. Now let’s assume $BTC was $85,000-$100,000 at the time, as I believe it would be. Then we are talking about $5.51 – $6.48 XRP.”
On the daily chart, the Relative Strength Index (RSI) indicator for
RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.
However, the price of XRP has been declining for over three years. On the weekly chart, XRP is hitting its lowest highs since April 2021. If this trend continues, the charts suggest that the XRP price could fall back to the $0.31 level, which has been an important support area through 2022 and 2023.
Related: Analysts say Bitcoin distribution ‘danger zone’ is over
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.