A popular crypto trader says XRP may be gearing up to outperform Bitcoin (BTC).
The analyst, who goes by the name King Thies, says he’s spotted a bullish divergence in the monthly chart of XRP/BTC.
A bullish divergence is an indicator of a potential trend reversal. It occurs when an asset hits a lower low while a technical indicator, such as the RSI or MACD, forms a higher low.
According to Thies, the divergence along with strong volume bodes well for XRP, and suggests a new rally may ripple through the altcoin markets at large.
“I’m sure there’s plenty others in the alt market in similar spots right now, but this slight Bull Div on the XRP/BTC monthly is impressive to say the least. Something is brewing in the alt markets.”
Source: King Thies/Twitter
The trader says a clear trend line breakout is underway, with XRP turning resistance into support.
He expects the third-largest cryptocurrency to consolidate above the $0.26 level before another move to the upside.
“Clear reversal for XRP, complete with strong volume and breakout + backtest. Both HOLDLers and traders alike will likely be happy with an entry in this current range of .26-.32c.”
Although he believes XRP may outperform Bitcoin in the weeks ahead, Thies is also bullish on BTC. The trader believes that Bitcoin has bottomed out at $9,600 and it is gearing up for a move to $11,000.
Sensing potential local low on #BTC with price currently hovering $9.6k. First image shows bband squeeze + KDJ crossing
IMO we see a rocket to $11k (res shown on 3D chart shown in image #2)
Continuation to downside would suggest $8.8k as next potential level of interest. pic.twitter.com/SVqGygD7jm
— Parabolic Thies License.