Is XRP ‘headed to zero’ against Bitcoin? Peter Brandt weighs in

• XRP has massively underperformed BTC for some time.
• XRP hit a key demand zone, however an analyst downplayed a powerful bullish reversal for the altcoin. 

Ripple [XRP] market individuals have been upbeat after revelations that the SEC lawsuit may quickly finish. The general market sentiment round XRP was constructive, too, within the final week.

Some XRP bulls even set conservative targets at $3 on the finish of this cycle. 

Nevertheless, Peter Brandt, a classical worth chart analyst, downplayed bulls’ optimism, particularly when weighing XRP’s efficiency towards Bitcoin [BTC].

Primarily based on the XRP/BTC chart, Brandt noted, 

“My comparability is to BTC, not USD, so here’s what I don’t perceive. How can XRP bulls be so insistent in that XRP is close to ATLs vs BTC, and, in actual fact, has solely closed larger than current ranges in 6 of the final 126 months?”

Supply: XRP/BTC

Is XRP headed to ‘zero’?

The above XRP/BTC chart tracks XRP efficiency towards BTC. If the worth is detrimental or declining, it means XRP is underperforming BTC.

Then again, a constructive worth, or rising XRP/BTC, interprets to XRP outperforming BTC. 

Primarily based on the chart, Brandt claimed that XRP is “headed to zero,” which means XRP was massively underperforming BTC, and XRP holders would moderately ditch their holdings and change them with BTC.

When requested whether or not the ‘low’ XRP meant that the altcoin had extra upside potential than BTC in the remainder of the cycle, Brandt quipped,

 “Very doable. However the burden of proof is on XRP, not BTC. And, if the play now could be with Alts, why not one thing apart from XRP?”

A have a look at XRP’s weekly charts (XRP/USDT) confirmed that the altcoin has eased right into a key demand zone that has confirmed regular since mid-2023.

So, a transfer above the blue 50-EMA (Exponential Transferring Common) may embolden bulls to purpose on the trendline resistance (white).

Supply: XRP/USDT on TradingView

Moreover, one explicit on-chain metric confirmed that bulls may prevail. In response to Santiment knowledge, the altcoin recorded a detrimental Trade Movement Stability (-6.66 million XRP) on the time of writing.

That meant 6.66 million XRP was withdrawn from exchanges—an accumulation pattern. 

Supply: Santiment

The Trade Movement Stability is the distinction between XRP shifting to or out of trade wallets. A constructive worth means extra XRP moved into an trade than out (alerts promoting strain).

The other is true, a detrimental worth means extra XRP withdrawn from exchanges, an accumulation sign. 

Regardless of the robust accumulation on the key demand zone close to $0.05, market sentiment was nonetheless barely detrimental, as proven by the bearish studying on the Weighted Sentiment metric. 

Ergo, one can argue that XRP has underperformed BTC however has dropped to a key demand stage. This makes it ripe for a bullish reversal if the SEC lawsuit and long-term market circumstances change into favorable.