In a recent update, there are statements from a leading cryptocurrency analyst. Accordingly, he makes important warnings for the altcoin XRP. The analyst notes XRP’s potential to outperform other alternative cryptocurrencies (altcoins). The analyst known as Blockchain Backer makes a point. Highlights an important technical development that could mean a bullish trend for XRP
Breaking the 200-week moving average for altcoin XRP
Sharing his views with a significant following on the microblogging platform X (formerly Twitter), Blockchain Backer noted a significant milestone for XRP. The cryptocurrency achieved a historic success by breaking its 200-week moving average for the altcoin market.
XRP is outperforming the altcoin market.
FOR THE FIRST TIME in history, XRP shattered the 200-week moving average vs the Altcoin Market.
Instead of being measured in dollars, here is the altcoin market measured in XRP.
As discussed a pullback for weeks, pullback. Nearly there. pic.twitter.com/GPyU3VT4ev
— Blockchain Backer (@BCBacker) August 15, 2023
The 200-week moving average calculates the average of the last 200 weeks of closing prices. Accordingly, it is a very important indicator in technical analysis that smoothes price fluctuations. It helps determine the trend direction and support/resistance levels.
Relative strength of XRP
Blockchain Backer’s analysis compares XRP’s performance to the top 125 cryptocurrencies by market cap, excluding Bitcoin. This comparison shows that altcoin XRP is exhibiting relative strength by breaking below the 200-week moving average. It also reveals that it indicates growth potential.
The analyst expected a short-term decline followed by a market pullback that would bring the top 125 digital assets back in line with the 200-week moving average. After this adjustment, the model predicts a significant uptrend for altcoin XRP. Thus, it shows differentiation from the broader market.
Recent market pullback and XRP’s prospects
Revisiting these predictions, Blockchain Backer observed that the expected market pullback has occurred. At this stage, the OTHERS/XRPUSD rate has made significant progress towards the 200-week moving average. It marked a period when the top 125 cryptocurrencies outperformed the altcoin XRP.
We looked for this pullback with the altcoins vs XRP and the 200-week moving average.
Altcoins measured in XRP, rather than USD, broke 200-week moving average.
Back test reached… Time for XRP to prove it.
OTHERS/XRPUSD pic.twitter.com/ZAeDAanNwr
— Blockchain Backer (@BCBacker) September 19, 2023
Despite this temporary setback, the analyst maintains a bullish outlook on the future of altcoin XRP. He also predicts a significant rally. However, specific price levels for this potential increase were not provided.
Upcoming developments for Altcoin XRP Ledger
In addition to technical analysis, altcoin XRP Ledger is preparing for significant improvements. Transaction throughput is expected to increase from 1,500 transactions per second (TPS) to an impressive 3,400 TPS with future upgrades.
Moreover, XRP token holders will soon have the opportunity to generate on-chain income through the XLS-30d exchange, which offers a built-in automated market maker (AMM) trading platform. AMMs facilitate permissionless cryptocurrency trading using liquidity pools. Additionally, when we look at it as cryptokoin.com, it manages the risk of permanent loss while offering users a share of the fees collected from transactions.
