XRP has shown a robust recovery against Bitcoin, gaining approximately 30% since the "triple bottom" in July. A combination of fundamental factors and chart patterns suggests that XRP may be gearing up for further gains in the coming months.

XRP’s Price Recovery Echoes 2021’s 500% Rally

The XRP/BTC trading pair has surged by over 50% after hitting a local bottom at around 760 satoshis in early June 2024. This level is noteworthy because it closely aligns with the support level that preceded a 500% rally between January and May 2021.

During the 2021 rally, XRP/BTC faced resistance at its 50-week exponential moving average (EMA), leading to a pullback before resuming its upward momentum. A similar scenario played out in August 2024 when the pair was rejected after testing the 50-week EMA.

This pattern suggests that traders view the 50-week EMA as a critical level where selling pressure intensifies. If XRP/BTC can break through this resistance, it could signal a bullish trend toward the 200-week EMA, currently around 1,890 satoshis, mirroring its upside target in 2021. This means XRP/BTC could potentially rise by approximately 100% by the end of 2024 if it successfully breaches the 50-week EMA at around 1,120 satoshis.

Post-Halving Fractal Boosts XRP’s Bullish Outlook

Another bullish indicator for XRP is the potential for Bitcoin’s market dominance to peak, which often occurs following its halvings. For example, after Bitcoin’s second halving in July 2016, its dominance index dropped by over 70%, indicating a shift in capital towards altcoins like XRP.

However, XRP/BTC underperformed following the third halving in May 2020, largely due to the SEC’s lawsuit against Ripple in December 2020, which dampened investor confidence. Now, with the lawsuit resolved and Ripple ordered to pay a $125 million penalty, XRP/BTC has climbed approximately 15% since the ruling, suggesting more gains could be on the horizon, particularly if Bitcoin dominance declines post-halving, as it typically does.

XRP Appears Undervalued Compared to Bitcoin and Ethereum

In US dollar terms, XRP seems significantly undervalued compared to top cryptocurrencies, including Bitcoin. As of 2024, XRP/USD is down approximately 3.5% year-to-date, while BTC/USD has gained 37.80% in the same period. Other altcoins, such as Ether, Solana, and BNB, have also outperformed XRP, with gains of 13%, 30%, and 84%, respectively, in 2024.

XRP's relative underperformance might indicate that it has room to catch up if market conditions improve. Investors could view this as an opportunity for XRP pairs to rally, especially if the broader altcoin market continues its upward trend.