Ripple (XRP) is the second largest coin by market cap now. It has happened before but it was considered to be temporary. However, this time, Ripple (XRP) and Ethereum (ETH) have a market difference of almost $3 billion. Normally, that would not seem like much in crypto markets, but we have a combined market cap of just over $100 billion. If the circumstances were different, we could have expected Ripple (XRP) to have held on to this position for long, but it seems to have run its course against both Ethereum (ETH) and Bitcoin (BTC). The weekly chart for XRP/ETH shows that Ripple (XRP) is just a heartbeat away from testing the previous ATH against Ethereum (ETH). We can already see a red candle forming after XRP/ETH was rejected at a strong resistance.
Ripple (XRP)’s rally against Ethereum (ETH) has now lost its momentum and as the RSI suggests a big retracement is likely in the near future. As XRP/ETH falls below the 10 Week EMA, we should see a rapid drop in price just like we did last time. This could mean that Ripple (XRP) might lag behind while the rest of the market recovers during the months ahead. That being said, Ripple (XRP) investors are one of the most enthusiastic and loyal supporters we have seen in this market. So, it would not be surprising to see Ripple (XRP) catch up with the rest of the market after its short term correction. There is a lot of interest around this project which is why the price rallied this aggressively against Bitcoin (BTC) and Ethereum (ETH) in the first place.
Ripple (XRP) investors that bought after August gained whereas most investors in other cryptocurrencies lost. Considering that most investors in Ripple (XRP) are mainly retail hodlers, it should not be surprising to see that effect translate into a growing interest in the project in the future. This is not the first time Ripple (XRP) has made independent moves. This time Ripple (XRP) investors are more confident than ever that even during a market crash, Ripple (XRP) might be able to perform better. Thus, it would not be unlikely to see Ripple (XRP) rising while the rest of the market falls in case of a market crash even if it is short lived.
Ripple (XRP) is due for a correction not only against Ethereum (ETH) but also against Bitcoin (BTC). Considering that XRP/BTC has topped out and reached the top of the descending channel on the weekly time frame, it is likely that we will see a strong pull back in the near future. This pull back is expected to be even more devastating than that in the case of Ethereum (ETH) and Ripple (XRP) will have to correct all the way against Bitcoin (BTC) till it reaches the bottom of the descending channel. Ripple (XRP) moved against the market short term but it does not seem to have lost anything long term. Ripple (XRP) just completed its mini altcoin rally that most other coins are supposed to complete in the next few months.