A prominent cryptocurrency analyst has ignited optimism within the XRP community, suggesting that XRP, the native token of the XRP Ledger, could outperform other alternative cryptocurrencies (altcoins) soon, citing a significant technical milestone.
In August, the pseudonymous cryptocurrency analyst Blockchain Backer shared insights with their 280,000+ followers on X (formerly Twitter). They highlighted an unprecedented development in XRP’s history: it had “shattered the 200-week moving average vs. the Altcoin market.”
A 200-week moving average, a critical indicator in technical analysis, helps smooth out price fluctuations by calculating the standard of an asset’s last 200 weekly closing prices. It is used to identify trend directions, support, and resistance levels.
The analyst’s chart, comparing XRP against the top 125 cryptocurrencies by market capitalization (excluding Bitcoin), revealed that XRP had dipped below the 200-week moving average, signifying relative strength compared to other leading cryptos.
Blockchain Backer anticipated a temporary downward trajectory, expecting a broader market pullback that would bring the top 125 digital assets, represented by the “OTHERS” index, back in line with the 200-week moving average.
In recent updates, the analyst noted that this projected market pullback had materialized. During this phase, the OTHERS/XRPUSD ratio made strides toward the 200-week moving average, temporarily outperforming XRP.
However, Blockchain Backer remains bullish on XRP’s future, envisioning a substantial rally ahead. While specific price levels were not mentioned, the analyst’s analysis suggests that XRP could stand out from the broader altcoin market.
Interestingly, the XRP Ledger is poised for significant upgrades that could enhance its throughput from 1,500 transactions per second (TPS) to a remarkable 3,400 TPS. These upgrades are anticipated to boost XRP’s appeal further.
Moreover, XRP token holders may soon have an opportunity to earn on-chain income through the introduction of the XLS-30d amendment. This amendment is set to integrate an automated market maker (AMM) trading platform into the ledger, enabling permissionless cryptocurrency trading using liquidity pools.
An AMM operates differently from traditional order books, relying on liquidity pools supplied by users. Token holders who contribute to these pools receive a share of the fees generated from each trade, albeit with the potential risk of impermanent loss.
As XRP continues to evolve and technical indicators show promise, the cryptocurrency’s future performance in the broader market remains a topic of keen interest among investors and analysts alike.