XRP is the only major altcoin underperforming against Bitcoin, so is a rally inevitable? 🚨 This article is 5 years old...
XRP is the only major altcoin underperforming against Bitcoin, so is a rally inevitable?
2 min read
Updated: Feb. 16, 2020 at 11:27 am UTC
Photo by Ali Abdul Rahman on Unsplash
In comparison to other leading altcoins like EOS, Cardano (ADA), and Ethereum, XRP is still lagging behind bitcoin even after an 80 percent rally against the USD since the first week of January.
Analyst says XRP should be higher than where it is now
According to Luke Martin, the price of XRP should be 11 percent higher than where it is currently based on the performance of other major altcoins.
Following the upsurge of Bitcoin in the past two months, EOS, ADA, and Ethereum surged significantly against both the USD and BTC.
While XRP has seen a sizable gain against the USD, it has not been able to outperform bitcoin despite the lack of volatility of the dominant cryptocurrency.
The Bitcoin price has been ranging between $10,200 to $10,500, unable to break out above key resistance to aim for higher levels at $10,900 and $11,500. When Bitcoin demonstrates a sideways movement, it often propels the altcoin market to see large gains against BTC.
That has been the case for Ethereum especially, which rose by 50 percent against BTC since January 1.
Is there any fundamental factor backing it?
In the fourth quarter of 2019, Ripple, the company that develops infrastructure around XRP and RippleNet, sold its lowest amount of XRP to date on a quarterly basis.
As previously reported by CryptoSlate, Ripple sold 20 percent less XRP from October to December in 2019, alleviating some of the selling pressure on the market.
It also did not sell any XRP to exchanges for the first time in history, establishing a stronger floor for the cryptocurrency to see potential upside movement in the near-term.
The decline in the sale of XRP could have minimized the selling pressure on the asset across major cryptocurrency exchanges, bolstering its chances for a rally.
Galaxy Digital CEO Michael Novogratz, who invested in the Ripple company, said that the company will have to distribute XRP in a rational way to ensure the sustainability of the cryptocurrency and its ecosystem.
Novogratz said:
“The price of XRP will be determined like all prices. If there are more buyers than sellers (and the company has a lot of control here) the price will rise. The company needs to distribute in a rational way at the same time building a real and scalable use case. I hope they do.”
A continuous decline in XRP sales by Ripple would strengthen the basis of the next upsurge, as it would leave XRP with higher chances of catching up to Ethereum and EOS in the short-term price performance.
Technical indicators also point towards XRP breaking out of a multi-year trendline for the first time since at least 2018.
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In this article
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Bitcoin
$99,100.64
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,314.99
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
EOS
$0.71143
EOS is a blockchain protocol that enables horizontal scaling of decentralized applications, allowing developers to efficiently create high performance distributed applications..
Cardano
$0.97087
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
Ripple
Ripple is a US-based technology company which develops the Ripple payment protocol and exchange network using XRP, the digital asset native to the XRP Ledger.
Michael Edward Novogratz, born on November 26, 1964, stands out as an iconic figure in the financial realm.