The price of XRP in Bitcoin terms sunk to a three-year low this week, suggesting a potential local bottom and buying opportunity for XRP.
XRP/BTC price ratio sinks to 2021 low
XRP’s (XRP) price compared to Bitcoin (BTC) fell to a three-year low last seen at the beginning of April 2021, according to TradingView data.
XRP/BTC, monthly chart. Source: TradingView
On the monthly chart, this chart pattern could be interpreted as a strong signal of an XRP/BTC bottom, according to Tony Severino, the founder of CoinChartist, who wrote in a May 6 X post:
“Great spot – he’s right. XRP/BTC just flashed a bullseye bottom signal.”XRP/BTC. Source: Tony Severino
Despite the optimistic chart formation, XRP/USD has been in a downtrend since the beginning of 2024. XRP price fell over 14% year-to-date to the current $0.53 mark, while BTC/USD rose over 43%.
BTC and XRP, year-to-date chart. Source: TradingView
XRP’s crabwalk can largely be attributed to Ripple’s ongoing lawsuit with the United States Securities and Exchange Commission, according to Iva Wisher, co-founder and chief operating officer of Prom and previous chief analyst at 3commas. Wisher told Cointelegraph:
“XRP’s price movement is tied to the uncertainty generated by its legal battle with the SEC. Such obstacles naturally lead to cautious investor sentiment and reduced trading activity.”
The SEC sued Ripple back in 2020, accusing it of illegally raising $1.3 billion through an alleged unregistered securities offering by selling XRP.
In the latest development, Ripple contested the SEC’s request to impose a $2 billion fine against the blockchain company, saying the penalty should not exceed $10 million.
Related: Bitcoin enters ‘new era’ as whales scoop up over 47K BTC during price pullback
Is the XRP local bottom in?
Despite XRP’s subdued price action, it could rise to a new all-time high by July, according to pseudonymous crypto analyst Charting Guy, who wrote in a May 6 X post:
“Fractal projected target is 0.00006486. With today’s BTC price, that puts us at a roughly $4.09 XRP. As I’ve been saying forever, new all-time high by July. Now say $BTC…..
