Analyst Benjamin Cowen provides insights into the popular cryptocurrency XRP, addressing its position relative to Bitcoin. Despite a summer increase, XRP is currently in a consolidation phase.
Market Situation of XRP/BTC
Cowen noted that the XRP/BTC pair, despite some increases over the past year, shows modest long-term performance. Currently, XRP is attempting to return to the 0.000028 BTC level, staying significantly below its previous peaks.
Price Movement Analysis of XRP
On the XRP/USD chart, a symmetric triangle pattern is forming, indicating a possible breakout. The 2.76-dollar level, where the 100-day EMA resides, stands out as support, while the altcoin's price hovers around 3.00 dollars. Investors aim to surpass the resistance in the 3.40-3.50 dollar range. The proximity of the Relative Strength Index (RSI) to neutral levels suggests movement in either direction.
Reasons for Bitcoin Preference
Although XRP benefits from the support of the Ripple ecosystem and a rapidly growing network of financial partnerships, the market still views XRP as a speculative altcoin. Bitcoin is seen as a safe haven and a store of value. According to Cowen, while XRP appears advantageous in valuation compared to Bitcoin, the risk level is considerably high. The technical setup indicates strong short-term potential, but the pivotal factor will be the direction of the upcoming breakout.
Benjamin Cowen's analysis shows that despite existing advantages, XRP faces high risks, making Bitcoin more attractive for cautious investors.
