Analyst Benjamin Cowen shares his views on the current state of XRP in comparison to Bitcoin, evaluating its competitiveness and prospects.
Current State of XRP
According to expert Benjamin Cowen, despite XRP's consolidating nature following its summer rally, the asset may remain undervalued compared to Bitcoin. Cowen points out that XRP has not regained the hegemony it demonstrated in the 2017 bull market, when its value reached all-time highs.
Technical Analysis of XRP
The XRP/BTC chart indicates that while there have been short-term rallies against Bitcoin in recent years, XRP's long-term performance remains modest. The current price of XRP is attempting to return to 0.000028 BTC, indicating that the asset is lagging behind Bitcoin's stable dominance. A symmetrical triangle is forming on the XRP/USD chart, with support located near the 100-day average at $2.76 and current trading around $3.00.
Outlook and Risks for Investors
Although XRP is supported by Ripple's ecosystem and an expanding network of financial partners, the market still views it as a speculative altcoin. Due to its volatility, XRP is less appealing to conservative investors compared to Bitcoin, which is regarded as a hedge and store of value. Cowen emphasizes that XRP carries a far higher risk, even though it may be undervalued compared to Bitcoin. The market will be watching how XRP responds to subsequent breakout attempts.
Overall, XRP represents an interesting asset for analysis, but its risks and volatility make it less preferable for holding compared to Bitcoin. Technical indicators and fundamental support from Ripple may create opportunities for traders, but their success will depend on the overall market conditions.
