Blockchain Backer, a seasoned market analyst, has called attention to the current XRP price condition in a YouTube analysis, highlighting the prerequisites for a breakout.
The analysis, which focuses on XRP’s historical price movements, was recently spotlighted by the Good Morning Crypto podcast. In the analysis, Blockchain Backer noted XRP’s apparent readiness for an upward move.
The analyst noted that XRP has spent a significant period in accumulation, trading within a range for an extended time. According to him, XRP recently recorded a backtest of the accumulation range, and this move is a signal for an imminent breakout.
However, he emphasized that there are conditions to be met in the broader crypto market and the macroeconomic scene before XRP can actually record this breakout.
These conditions involve Bitcoin’s price movements, the price direction of altcoins, and the stock market’s performance.
The analyst confirmed that he has observed growing narratives surrounding XRP’s price trajectory. Nonetheless, he highlighted the importance of understanding the market dynamics, avoiding speculative narratives, and sticking to observable market behaviors.
XRP Follows Bitcoin’s Movements
One key observation in his analysis is the historical correlation between XRP’s price and Bitcoin’s upward trajectory. Blockchain Backer pointed out that XRP has consistently experienced bull runs only after a surge in Bitcoin’s value.
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This pattern, evident in previous market cycles, suggests a prerequisite for Bitcoin’s positive movement before significant XRP surges. The analyst emphasized that this pattern occurred between 2015 and 2016, in 2017 and in 2021.
Another pattern observed in his charts is the fact that XRP tends to underperform when Bitcoin records its bullish run. For instance, while BTC rallied to $2,760 from December 2016 to May 2017, XRP did not record a price surge until May 2017, just after Bitcoin’s rally.
However, XRP often outpaces Bitcoin when it engineers its uptrend despite entering the party late. The altcoin rallied 52,887% from $0.00626 in February 2017 to the $3.31 all-time high in January 2018. In contrast, BTC only saw a 1,687% surge within the same period despite starting earlier.
Stock Market Could Impact XRP
Blockchain Backer extended the analysis beyond cryptocurrency markets, linking Bitcoin’s performance to broader indices like the Dow Jones Industrial Average and NASDAQ. The aim was to highlight how these stocks could influence XRP’s price direction.
He called attention to the recent all-time highs in these indices, raising questions about the potential impact on Bitcoin and, consequently, XRP.
According to him, BTC follows the stock market, and a peak in the market may signal a turning point for Bitcoin and subsequently affect XRP.
The analyst examines the possibility of Bitcoin reaching a new all-time high or experiencing distribution at retracement levels.
The market conditions and historical data indicate that XRP’s price surges often align with significant phases in Bitcoin’s cycle.
Blockchain Backer contends that conditions are aligning for a potential narrative shift in the cryptocurrency market, especially for XRP.
The ETF Narrative and the Altcoin Market
The analysis touches on retail investor sentiment, noting the prevailing narrative around the spot Bitcoin ETF.
While the market seems focused on this development, Blockchain Backer warns of potential distribution and the likelihood of retail investors being caught off guard.
Notably, Bitcoin is now down 16% since the ETF approval, with its downturn compounded by large dumps from the Grayscale Bitcoin Trust (GBTC).
Market analysts such as Arthur Hayes, co-founder of BitMEX, believe BTC could further collapse, potentially dumping to the $35,000 mark.
Should this drop materialize, XRP would also suffer the impact. In addition, it might take a longer time for BTC to recover, and this also affects XRP’s recovery potential since the asset only records an uptrend following Bitcoin’s surge.
Blockchain Backer also highlighted the altcoin market as a crucial factor in XRP’s price movement. He demonstrated how XRP’s major moves historically align with broader altcoin market trends. He identified the strength in the altcoin market, which sets the stage for an XRP breakout.
Meanwhile, XRP is down 2.21% over the last 24 hours, currently changing hands at $0.5276. The token has given up the support levels at $0.55 and $0.53, with the bears looking to also claim $0.52. XRP needs some support from the Bitcoin market to hedge against further drops.