XRP Signals Upside Potential vs. Bitcoin

What to Know:

• A prominent crypto analyst suggests reducing Bitcoin exposure in favor of select altcoins, citing better risk-reward profiles.
• Bitcoin’s price struggles near $90,000 amid broader market pullbacks and options market dynamics.
• XRP is highlighted as an example of an altcoin with the potential for explosive gains after a period of underperformance.

A well-known crypto analyst, previously bullish on Bitcoin, is now advising investors to reallocate their portfolios towards select altcoins. Citing Bitcoin’s current price near $90,000, the analyst argues that the risk-reward ratio favors fundamentally sound altcoins trading at a discount. This perspective gains traction as Bitcoin’s upward momentum stalls and the market seeks new opportunities for growth.

Bitcoin’s Diminishing Returns

The analyst, CrediBULL Crypto, highlights a history of accurate Bitcoin predictions, dating back to the $3,000 level in 2017. However, with Bitcoin currently trading roughly 30 times higher than its last cycle low, the potential for further gains is viewed as limited compared to the risk. CrediBULL suggests that while Bitcoin often leads the initial recovery from a bear market, altcoins tend to experience more significant rallies later in the cycle.

XRP as a Prime Example

XRP is presented as a case study, with the analyst noting its extended period of underperformance relative to Bitcoin. However, XRP eventually delivered substantial returns in a short timeframe, surpassing the gains of Bitcoin bought above $25,000 during the same period. This example underscores the potential for patient investors to accumulate high-quality altcoins that may remain dormant before experiencing explosive growth.

Market Sentiment and Bitcoin’s Stagnation

Bitcoin’s recent price action supports the argument for altcoin diversification. Bitcoin has struggled to maintain levels above $90,000. This stagnation, coupled with broader market pullbacks affecting major altcoins like Ethereum, has fueled discussions about relative value and potential rotation into alternative assets.

Options Market Influence

Options market dynamics are also playing a role in Bitcoin’s price consolidation. According to on-chain technician Wise Crypto, a large options structure is keeping Bitcoin range-bound between $85,000 and $90,000. Hedging activity associated with these options is suppressing volatility until a major expiry event later in the week.

XRP’s Potential Rebound

Currently trading near $1.85, XRP is down significantly from its July peak. Despite negative sentiment surrounding the token, some analysts point out that similar periods of pessimism have historically preceded sharp rebounds. This historical context adds weight to the argument that XRP, and other select altcoins, may offer more compelling investment opportunities than Bitcoin at current levels.

Conclusion

As Bitcoin struggles to break above key resistance levels, the focus is shifting towards altcoins with the potential for outsized returns. While Bitcoin remains the dominant cryptocurrency, its diminished risk-reward profile is prompting investors to explore alternative assets like XRP. Whether this rotation gains momentum will depend on Bitcoin’s ability to resume its upward trajectory and the performance of altcoins in the coming weeks.

Related: XRP Weakens: Targets Next Support Level

Source: Original article