Is XRP Better Investment than Bitcoin Heading into 2025?
XRP’s recent price action shows a continued struggle, especially when compared to Bitcoin. With XRP/BTC down to 0.00000863, concerns about its ability to perform in 2025 are rising. As Bitcoin gears up for a potential rally fueled by macroeconomic factors, XRP’s legal troubles and whale sell-offs cast a shadow over its future performance.
Bearish Indicators Signal Trouble for XRP
XRP’s bearish outlook is becoming clearer, with multiple signals pointing toward a challenging road ahead. The ongoing SEC appeal against Ripple creates uncertainty, limiting investor confidence. Any unfavorable ruling in 2025 could severely impact the token’s price action.
Legal woes have been a long-standing issue for XRP, and until this case reaches a final conclusion, investor sentiment is likely to remain cautious.
XRP/BTC struggles near 0.00000870 as Bitcoin eyes 2025 rally.
On the technical side, the XRP/BTC pair shows a significant downtrend. As of October 2024, XRP/BTC hovers around 0.00000863, reflecting XRP’s underperformance against Bitcoin. Historically, Bitcoin dominates market cycles when macroeconomic conditions shift, such as the anticipated Fed rate cuts.
The shift could drive Bitcoin higher, leaving XRP lagging.
XRP supply distribution by balance of addresses. Source: Santiment
Additionally, whale accumulation data adds to the bearish sentiment. A recent chart shows major whales offloading XRP since August 2024, a signal of diminishing confidence. Large and mid-tier XRP holders have reduced their positions, suggesting further downside potential.
In contrast, Bitcoin’s regulatory clarity and market dominance make it the safer bet heading into 2025.
Technical Pattern Adds To Bearish Cues
Meanwhile, the XRP USD pair has been struggling with the bearish pressure against the token, with prices refusing to move above $0.55. Compounding the bearish outlook is the token’s 20-day EMA (red wave) crossing below its 100-day EMA (blue wave) to form a bearish pattern called the death cross.
Market participants consider the pattern a harbinger of bearish market conditions and, thus, a sell signal.
XRP USD daily price chart with RSI. Source: Tradingview
Since Oct. 3, price candles of the Ripple token have formed a nearly straight line, suggesting that bulls and bears await updates in the SEC appeal in its lawsuit against Ripple before deciding on a move. The death cross is not helping either.
It seems that XRP will have a hard time mounting a rally as it enters 2025. However, a judgment favoring Ripple in the SEC appeal, ETF approvals, and other bullish cues could help XRP prices register impressive gains in the coming year.
However, all those cues now depend on XRP’s shaky legal status, which means Bitcoin would likely remain investors’ favorite in 2025.
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