XRP Shows Potential For A 70% Surge Post-Bitcoin Halving: Analysis
Table of Contents
XRP To Surge Post-Bitcoin Halving
As the cryptocurrency market gears up for the highly anticipated Bitcoin halving event scheduled for April 19, 2024, analysts believe that XRP could be the standout performer among other cryptos once the event is over. Despite lagging behind BTC in terms of price performance in 2024, XRP shows promising signs of a significant rebound, with projections suggesting a potential surge of up to 70%.
Data surrounding previous Bitcoin halving events provides a compelling case for XRP’s strong price performance. Following the third Bitcoin halving in May 2020, the XRP/BTC pair recorded an impressive rise of over 100%.
Similarly, during the second Bitcoin Halving in July 2016, the pair experienced an 85% jump. These patterns suggest a tendency for the XRP/BTC to exhibit similar price actions after this year’s Bitcoin halving event.
One of the driving factors behind XRP’s potential surge post-halving is the anticipated reduction in Bitcoin’s dominance. Traders commonly rotate their investments from Bitcoin to altcoins following halving events, leading to what is known as the “alt season.” Hence, altcoins like XRP, with their lower market caps and higher volatility, stand to benefit from this trend, offering significant short-term gains to investors.
Technical Analysis and Whale Actions
Technical indicators further support the bullish outlook for XRP/BTC. Since February, the pair has been trending within a falling wedge pattern, a bullish reversal setup that typically resolves with a breakout above the upper trendline.
Based on technical analysis, the breakout target for XRP/BTC in April/May is 0.00001022 BTC, representing a potential increase of approximately 16.75% from current levels. Looking ahead to June, the 50-week Exponential Moving Average (50-week EMA) is key, with projections indicating a substantial 70% surge from its present price level.
Moreover, XRP is witnessing aggressive accumulation by its whales. Since March, entities holding more than 1 million XRP tokens have seen a noticeable uptick. Furthermore, there has been a notable uptick in the number of XRP holders owning 100,000 tokens or more since the start of this month. This move indicates a growing optimism among whales on the positive impact of the Bitcoin halving on XRP’s price.
Bitcoin Halving And Global Shifts in Mining Policies
Meanwhile, the imminent Bitcoin halving event is also causing significant shifts in mining strategies and regulatory landscapes. For instance, Auradine, a leading Bitcoin mining company in the US renowned for its focus on security and AI integration, recently secured a substantial $80 million in Series B funding.
This successful fundraiser underscores growing investor confidence in the sector. Also, Bitfarms Ltd., a prominent BTC miner in North America, announced a $240 million investment to enhance its mining operations, signaling proactive preparation within the industry.
Beyond mining operations, the upcoming halving event is spurring regulatory debates worldwide. For instance, Paraguayan legislators are discussing a legislative proposal to ban crypto mining due to concerns over exploiting the country’s hydroelectric resources.
Fourteen Paraguayan senators supported the bill initially. However, these senators recently withdrew their support for the proposed ban. A possible reason for their change of stance could be that they’ve recognized the economic potential of harnessing surplus energy from the Itaipu hydropower plant for crypto mining. Senator Salyn Buzarquis explained that Paraguay’s newfound support for crypto mining investment depends on balancing economic opportunities with environmental concerns.
Time Crypto Market offers content visibility for dozens of crypto enterprises, and you can be a part of our network! Reach out to us on our telegram chat for inquiries. The nature of cryptocurrencies is highly unpredictable; always perform your due diligence before any investment. Several articles on our site come from guest contributors or are commissioned pieces, not originating from Time Crypto Market's in-house writers. The perspectives shared in these articles might not necessarily align with those of Time Crypto Market. We do not assume responsibility for the veracity, caliber, promotions, offerings, or any other elements presented on our platform. Consult our comprehensive terms of service and disclaimer for more details.
