Is XRP ‘headed to zero’ against Bitcoin? Peter Brandt weighs in – AMBCrypto News

• XRP has been significantly lower than BTC for a while.
• Although XRP has reached a major demand zone, analysts downplayed the altcoin’s strong bullish reversal.

ripple [XRP] Market participants are feeling optimistic as it becomes clear that the SEC case may be coming to an end soon. Overall market sentiment regarding XRP last week was also positive.

Some XRP bulls may even set it conservatively target At the end of this cycle it will be $3.

However, classic price chart analyst Peter Brandt downplayed the bulls’ optimism, especially when compared to XRP’s performance. Bitcoin [BTC].

Based on the XRP/BTC chart, Brandt I got it.,

“Here’s what I don’t understand since I’m comparing BTC and not USD. How can XRP bulls be so adamant even though it hasn’t finished yet?”

Source: XRP/BTC

Is XRP heading towards “zero”?

The XRP/BTC chart above tracks the performance of XRP against BTC. If the value is negative or decreasing, it means that XRP is underperforming BTC.

On the other hand, a positive value, i.e. an increase in XRP/BTC, means that XRP is outperforming BTC.

Based on the chart, Brandt claimed that XRP is “heading toward zero,” meaning that XRP is significantly below BTC and that XRP holders would rather dump their holdings and replace them with BTC. .

When asked if XRP being “low” means the altcoin is likely to rise more than BTC for the rest of the cycle, Brandt said: made a joke,

“That’s quite possible. But the burden of proof is on XRP, not BTC. And if the goal now is Alts, why use something other than XRP?”

A look at the weekly chart of XRP (XRP/USDT) shows that the altcoin has settled into a major demand zone that has proven stable since mid-2023.

Therefore, a move above the blue 50-EMA (exponential moving average) could encourage bulls to target the trendline resistance (white).

Source: XRP/USDT on TradingView

Additionally, certain on-chain indicators indicated that the bulls could win. According to Santiment data, the altcoin recorded a negative exchange flow balance (-6.66 million XRP) at the time of writing.

This means that 6.66 million XRP has been withdrawn from the exchange, and there is an accumulation trend.

Source: Santiment

Exchange Flow Balance is the difference between XRP moving into or out of your Exchange wallet. A positive value means that more XRP is flowing into the exchange than flowing out (a signal of selling pressure).

The reverse is also true, a negative value means more XRP will be withdrawn from the exchange, i.e. an accumulation signal.

Despite solid accumulation in the key demand zone around $0.05, market sentiment remained slightly negative as indicated by a bearish reading on the weighted sentiment indicator.

Therefore, one could argue that although XRP is below BTC, it has also fallen to a major demand level. As such, it is ripe for a bullish reversal if SEC litigation and long-term market conditions favor it.