Technical analyst Charting Guy has shared a new perspective on the relationship between XRP and Ethereum, identifying a setup that he believes could lead to XRP outperformance in the short term.
His analysis, published on social media platform XRP Price Action on Ethereum for the next three months.
Rare weekly bullish divergence favors XRP over Ethereum
In his update, Charting Guy explained that The weekly XRP/ETH Relative Strength Index (RSI) was rejected earlier but has now reversed into a bullish divergence. The RSI has risen from a low region, while the price closed at a lower low last week, which is a telltale sign of easing selling pressure and XRP is gaining strength against Ethereum.
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This divergence marked in green on the analyst’s XRP/ETH chart, shown below, mimics a setup that preceded another major swing in XRP’s favor. The yellow moving average of the RSI has also started to flatten, and this is another sign that momentum could be stabilizing before a breakout.
The last time this same setup occurred was in June 2024, just before XRP began a multi-month surge against Ethereum. Back then, the XRP/ETH pair rose from 0.00015 to 0.0003 in August 2024, before retracing and finally recovering in November 2024.
The pattern described by the analyst shows that XRP/ETH is currently consolidating near the 0.00063 ratio level. This time, the setup looks equally convincing. The rising RSI curve points to market share on the XRP side, while Ethereum’s relative momentum continues to slow. If the pattern repeats, it could usher in another short-term cycle of token strength against ETH.
Short-term projection favors XRP
As shown by the projection drawn in blue in the chart above, Charting Guy envisioned a scenario where XRP rises sharply relative to Ethereum. The projection uses the pair’s performance between July 2024 and March 2025 to predict the next move. From here, the projection places the XRP/ETH pair trading above 0.00015 by March 2026.
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He concluded his analysis by stating, “I am VERY bullish on $XRP > $ETH the next 3 months.” Its three-month forecast implies that XRP could regain a leading position among major altcoins over the next quarter. If the token manages to surpass Ethereum as predicted, it will close the gap in its market capitalization.
At the time of writing, XRP is trading at $2.64 with a market capitalization of $158 billion. Ethereum, on the other hand, is trading at $4,025 with a market capitalization of $486 billion.
Featured image from iStock, chart from Tradingview.com
