XRP Struggles to Keep Up with Bitcoin, Faces Legal and Technical Headwinds

XRP's recent price action shows a continued struggle, especially when compared to Bitcoin. With XRP/BTC down to 0.00000863, concerns about its ability to perform in 2025 are rising.

A glance at XRP's recent price action shows a continued struggle, especially when compared to Bitcoin. While BTC's price has seen substantial gains over the past year, XRP has lagged behind. This is evident in the XRP/BTC pair, which has dropped to 0.00000863 as of October 2024.

This decline in XRP/BTC is a cause for concern, considering the upcoming macroeconomic shifts that could propel Bitcoin to new heights. As the Federal Reserve pivots to cutting interest rates in 2025, an event that is widely anticipated, Bitcoin is expected to rally strongly due to its status as a non-interest-bearing asset.

However, XRP's legal troubles and the sell-offs by large whale investors cast a shadow over its future performance. Several bearish indicators are emerging for XRP, painting a challenging picture for the token in 2025.

Bearish Indicators Signal Trouble For XRP

A closer examination of XRP's price movements reveals multiple bearish signals. The ongoing SEC appeal against Ripple has created uncertainty among investors, limiting any favorable buying pressure. Any unfavorable ruling in 2025 could severely impact the token's price action.

Throughout the legal saga, any positive news has been met with investor enthusiasm, driving up XRP's price. However, the token has failed to sustain these gains, ultimately sliding back down due to unfavorable updates.

Another key indicator to watch is the XRP/BTC pair, which shows a significant downtrend. As of October 2024, XRP/BTC hovers around 0.00000863, reflecting XRP's underperformance against Bitcoin.

Historically, when macroeconomic conditions shift, such as the anticipated Fed rate cuts, Bitcoin tends to dominate the market cycles. This leaves less room for other cryptocurrencies, including XRP, to make substantial gains.

Adding to the bearish sentiment for XRP is the whale accumulation data. A recent chart shows major whales offloading XRP since August 2024. This sell-off by large investors is a signal of diminishing confidence in the token.

Furthermore, both large and mid-tier XRP holders have reduced their positions, suggesting that further downside potential could be on the horizon for XRP.

In contrast, Bitcoin's clear regulatory status and market dominance make it the safer bet heading into 2025, especially given the limited time left before the next halving event.

Technical Pattern Adds To Bearish Cues

Meanwhile, the XRP USD pair has also encountered strong selling pressure, as prices refuse to move above $0.55. Compounding the bearish outlook is the token's 20-day EMA (red wave) crossing below its 100-day EMA (blue wave) to form a bearish pattern called the death cross.

In technical analysis, the death cross is considered a harbinger of bearish market conditions and, thus, a sell signal. It occurs when a short-term moving average, such as the 20-day EMA, drops below a long-term moving average, like the 100-day EMA.

This pattern indicates a shift in momentum toward the bears, suggesting that further price declines could be on the horizon. Market participants often use this pattern to identify potential selling opportunities.

After forming the death cross in October, XRP's price candles have formed a nearly straight line, suggesting that both bulls and bears are awaiting updates in the SEC appeal before deciding on their next move.

It seems that XRP will have a hard time mounting a rally as it enters 2025. However, a judgment favoring Ripple in the SEC appeal, ETF approvals, and other bullish cues could help XRP prices register impressive gains in the coming year.

But with all those cues now hinging on XRP's shaky legal status, it appears that Bitcoin will likely remain the favorite among investors in 2025.

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