XRP’s potential retest of $0.70 depends on BTC, according to one analyst.
There has been a strong correlation between XRP and BTC in the last three months.
If the current buying momentum continues, XRP may rise above the resistance at $0.65.
Digital asset analyst Bill Morgan, claimed in a recent post on X that Ripple’s (XRP) potential rise above $0.70 largely hinges on the movement of Bitcoin (BTC). Morgan’s opinion was in response to a chart shared by pseudonymous trader Guy on the Earth who predicted that XRP may soon flip $0.70, and head in the $0.80 direction.
Depends on Bitcoin price movement as always https://t.co/Sa8wi57uBx
— bill morgan (@Belisarius2020) November 23, 2023
At press time, XRP’s price was $0.62, following a 2.21% increase in the last 24 hours. BTC, on the other hand, maintained its hold above $37,300. Meanwhile, Morgan’s post about XRP’s dependence on Bitcoin could be valid. This is because of the strong correlation between the two cryptocurrencies.
XRP follows BTC
According to wealth management platform Macroaxis, the 90-day correlation coefficient between BTC and XRP was 0.9. Values of this coefficient range from -1 to +1. When the correlation coefficient is close to 0 or -1, it means that the price movements of the assets compared are dissimilar.
However, a value close to 1 suggests that two assets move together. The coefficient of 0.9 indicates that XRP and BTC’s movements were almost at par with each other.
XRP/BTC Correlation (Source: Macroaxis)
This correlation was also confirmed by the 30-day performance of both cryptocurrencies. According to CoinMarkeCap, Bitcoin’s 30-day performance was a 9.64% increase while XRP was up 12.53%.
The XRP/USD 4-hour chart showed that the token was edging towards $0.65. The last time that XRP touched $0.65 was on November 16, at which point it was rejected and plummeted to $0.58.
Time to flip $0.70?
As of this writing, bulls appeared to have taken advantage of a support at $0.59. From there, buying pressure pushed XRP to $0.61. However, a rejection occurred as XRP attempted to flip $0.62.
Meanwhile, the Awesome Oscillator (AO) showed that there has been a bullish twin peak for XRP. As a result, the AO jumped to 0.008. The AO reading above zero means that there is an existing uptrend. So, XRP has a chance at retesting $0.65.
But to approach $0.70, XRP may need BTC to move upwards. If BTC does rise as high as $37,500, then XRP’s Relative Strength Index (RSI) may also rise above 56.76.
XPR/USD 4-Hour Chart (Source: TradingView)
The aforementioned RSI is a sign that buyers are determining the market direction. Should the buying momentum push the RSI reading upwards, then XRP may inch toward $0.70, and possibly flip the zone.
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