XRP forms a doji candle on the weekly chart, signaling market indecision and a potential trend change.
XRP historically outperforms Bitcoin after halving events, with gains of over 100% following the third halving in 2020.
Altcoin seasons often follow Bitcoin halvings, and XRP could see significant gains if history repeats.
XRP has been staging a remarkable comeback while Bitcoin continues to dominate the crypto market. This token has formed a doji candle on the weekly chart as the post below suggests.
#XRP Also forming a doji candle on the weekly signalling indecision against Bitcoin. Historically $XRP rallied the full measured move within 8 weeks last time this occured!!! Measured move is 6000%!!!!! pic.twitter.com/WDLn1vQ9kX
— BLOCK BULL (@TheBlockBull) July 6, 2024
A doji candle in candlestick occurs when a security’s open and close prices are nearly the same. This creates a candle with a very small body.
This candlestick often indicates market indecision. The doji candle could also signal the prevailing trend may be weakening and a change in direction could be near.
The Bitcoin Halving Connection
XRP has historically shown strength during periods surrounding Bitcoin halving events. These events occur approximately every four years when the block reward for Bitcoin miners is cut in half.
After the third halving in May 2020, the XRP/BTC pair surged over 100%. A similar jump of 85% occurred after the second halving in July 2016.
The reasoning behind this phenomenon lies in investor behavior. Following a halving, investors rotate their holdings from Bitcoin to altcoins.
The alt-season is driven by the potential for significant short-term gains in altcoins. They have lower market caps and higher volatility compared to Bitcoin during this period (alt-season).
Technical Indicators Pointing Upward
Weekly charts project XRP’s price against Bitcoin to reach its 50-week Exponential Moving Average (EMA) soon. Interestingly, this 50-week EMA has been a bullish target for traders following the last two Bitcoin halvings.
This potential resurgence of XRP highlights a recurring trend within the crypto market – altcoin seasons following Bitcoin halvings. XRP could see significant gains not just against the US dollar but also outperform Bitcoin if history repeats.
XRP’s historical pattern and technical indicators suggest that higher highs may be on the horizon. However, it’s advisable to proceed with caution and do your research before making any investment decisions.
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