XRP and Ethereum Market Analysis: A Potential Shift in Position?

The Gap between XRP and Ethereum Closes

Over the past four months, the market capitalization (MC) gap between XRP and Ethereum has decreased by approximately 33%. This sudden change has led to an increase in discussions within the community about a potential shift in the position of both assets.

In a recent development, XRP’s fully diluted valuation (FDV) has surpassed Ethereum’s, although Ether (ETH) still leads in terms of market capitalization and FDV.

XRP/ETH Eyes Pivotal Resistance Breakout

Dom, a renowned XRP market analyst, recently compared different timelines for the XRP/ETH chart, highlighting XRP’s attempt to break through a long-term resistance level against its counterpart. The chart displays XRP’s attempt to breach the 0.0012 resistance level, which has historically triggered a parabolic rally of 160% when broken.

As shown above, the XRP/ETH pair is at a critical junction under the 0.0012 overhead resistance level, which has historically triggered a parabolic rally of 160% when breached. This multi-week outperformance for XRP potentially positions the altcoin for another breakout in 2025.

Market Analysts Weigh In

Dom believes that if XRP can break through its current resistance level, it may rally on its own against ETH. Even if it only achieves half its typical past gains (approximately 80%), it could still surpass ETH in market capitalization.

Bobby A, a crypto trader, believes that despite being in a “highly fearful market environment,” XRP has gained price acceptance above its previous cycle high from April 2021. According to Bobby A’s analysis, XRP’s monthly chart suggests that the asset could average around $2.29 to $2.61 in mid-2025, supported by market trends and the asset’s breakout from a long-term accumulation pattern.

XRP Futures Traders Remain Sidelined

XRP price surged 15% over the past day in anticipation of the upcoming crypto summit in the White House, with the markets speculating positive news catalysts. On-chain activity also experienced a significant spike, with daily active addresses increasing by 135,000 on March 4. Over the past week, active addresses surged by 620%, rising from 74,589 to 462,650 since February 28.

However, data from CoinGlass suggests that XRP futures traders remain inactive in the markets. After future open interest (OI) dropped by 63% between January 18 and March 1 ($7.87 billion to $2.92 billion), the OI has registered a minor tick of 15% over the past few days, indicating a lack of interest in the futures and perpetual market.

Conclusion

The recent market developments have led to an increased discussion about a potential shift in the position of XRP and Ethereum. With XRP’s fully diluted valuation surpassing Ethereum’s and the asset’s potential to break through a long-term resistance level, the stage is set for a potential parabolic rally. Market analysts are divided, with some predicting a rally to $2.29 to $2.61 in mid-2025 and others warning of a lack of interest in XRP futures.

FAQs

Q: What is the current market capitalization gap between XRP and Ethereum?
A: The market capitalization gap has decreased by approximately 33% over the past four months.

Q: What is XRP’s fully diluted valuation relative to Ethereum’s?
A: XRP’s fully diluted valuation has surpassed Ethereum’s.

Q: What is the current resistance level for the XRP/ETH pair?
A: The current resistance level is 0.0012, which has historically triggered a parabolic rally of 160% when breached.

Q: What is the future outlook for XRP’s price?
A: Market analysts are divided, with some predicting a rally to $2.29 to $2.61 in mid-2025 and others warning of a lack of interest in XRP futures.