Rare technical signal indicates that XRP may surpass Bitcoin's high

Source: PortaldoBitcoin Original Title: Rare Technical Signal Indicates XRP May Surpass Bitcoin’s Performance Original Link: XRP has returned to the market’s attention after a sharp daily price drop coincided with a rare technical signal in the XRP/BTC pair, which hasn’t appeared since 2018 and has rekindled the thesis that the token may once again outperform Bitcoin in specific risk rotation windows.

While the dollar price faced pressure and lost important supports, technical analysts and traders began to look beyond the spot chart, assessing the asset’s relative strength against the market’s leading cryptocurrency.

As of Wednesday morning (7), XRP was down about 5%, falling from US$ 2.39 to US$ 2.27 after breaking the US$ 2.32 support and maintaining the dynamics of a descending channel that has been limiting recovery attempts.

The most significant movement occurred late the previous day, when a strong volume increase pushed the price to a low of US$ 2.21. Trading volume reached US$ 256.3 million, about 142% above the 24-hour moving average, characterizing a typical “flush” or capitulation event, with aggressive selling followed by absorption of supply.

Despite the initial pressure, the asset did not stay below US$ 2.21, signaling demand in that range. From there, XRP attempted a recovery but faced consistent resistance between US$ 2.31 and US$ 2.32, exactly where support had been lost. The inability to regain this zone keeps the short-term structure technically negative, even with signs of stabilization after the volume peak.

In shorter timeframes, the price behavior suggests an attempt to form a base. On the 60-minute chart, buyers repeatedly defended the region between US$ 2.25 and US$ 2.26, with higher lows forming after the bottom recorded at US$ 2.25.

Advances occurred with higher volume participation, while pullbacks were accompanied by weaker activity, a pattern considered constructive by traders, although still insufficient to reverse the broader trend as long as the market remains below the main resistance.

XRP/Bitcoin Ratio

The backdrop supporting renewed interest in XRP, however, lies in the relative strength chart against Bitcoin. Analysts highlighted that the XRP/BTC pair is approaching a breakout above the Ichimoku cloud on the monthly chart, something that hasn’t happened since 2018.

Historically, this type of signal is interpreted as a sign that XRP tends to outperform Bitcoin if the breakout is confirmed, especially during periods of rotation among major altcoins.

This reading helps contextualize the recent spot price decline. Instead of a slow deterioration process, the pullback was accompanied by signs of forced selling, which, for many traders, tends to clear leveraged positions and create a healthier technical base, provided key levels are preserved. In this scenario, the US$ 2.21 level has come to be seen as the dividing line between stabilization and renewed selling pressure.

In the short term, the technical map is relatively clear. If support at US$ 2.21 remains intact and the price manages to regain the US$ 2.31 to US$ 2.32 range, the recent movement can be interpreted as a high-volume “shakeout,” paving the way for a retest toward US$ 2.39, where residual supply from the last breakout remains.

Conversely, a sustained loss of US$ 2.21 would turn the recent bottom into a trigger for a new wave of liquidations, pushing the market to seek lower demand zones defined by the previous structure.

Meanwhile, the behavior of the XRP/BTC pair remains an additional significant variable. Although the Ichimoku signal does not guarantee an immediate dollar price increase, a confirmed breakout increases the likelihood that corrections in XRP will be bought more aggressively than equivalent drops in Bitcoin, especially if the market re-enters a higher risk appetite environment early next year.