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XRP has achieved its longest-ever winning streak against Ethereum (ETH), outperforming ETH for six consecutive months. This remarkable run began in November of last year when XRP surged by a staggering 160.4% relative to ETH. Since then, XRP has continued its momentum with gains of 18.5% in December, 47.3% in January, 4.3% in February, 19.6% in March, and 14.3% in April. Over the six-month period, XRP has gained a total of more than 264% against ETH, raising questions about whether this trend is sustainable.

Historical Context and Technical Analysis

Historically, XRP has rarely outperformed ETH for more than two consecutive months, making this six-month streak particularly noteworthy. According to analysts, recent price action on the XRP/ETH chart suggests a significant shift in market dynamics. XRP has broken above a key resistance level in the 0.00022–0.00025 ETH range, a zone that has held importance for over eight years.

“In past instances, such as early 2017 and late 2017, XRP only began to accelerate once it flipped this zone into support. This breakout could indicate a broader market shift in favor of XRP,” said a crypto analyst.

If this historical pattern repeats, XRP’s recent outperformance may not be a short-term anomaly but rather part of a larger trend. Investors and traders should monitor this level closely to assess XRP’s potential for continued gains against ETH.

Factors Driving XRP’s Momentum

XRP’s strong performance can be attributed to several key factors:

  • Regulatory Developments: The ongoing SEC vs. Ripple lawsuit appears to be nearing resolution, which has boosted investor sentiment.
  • Strategic Reserve Inclusion: Ripple’s inclusion in the U.S. strategic reserve has added credibility to the asset.
  • ETF Speculation: Market speculation about a potential spot XRP exchange-traded fund (ETF), with an estimated 77% approval likelihood by 2025, has further fueled excitement.

These developments have created a favorable environment for XRP, allowing it to outperform other major cryptocurrencies like Ethereum.

Ethereum Faces Challenges

While XRP continues to gain momentum, Ethereum has encountered several challenges that have dampened investor confidence. Upcoming network upgrades, such as Pectra and Fusaka, are designed to enhance Layer 2 (L2) solutions but may inadvertently weaken Ethereum’s revenue model. These upgrades could erode Ethereum’s value accrual, leading to concerns about the long-term profitability of holding ETH.

Furthermore, Ethereum’s fundamentals have shown significant signs of weakness:

  • Total Value Locked (TVL): Ethereum’s TVL has dropped from approximately $70 billion at the start of the year to $46 billion, as reported by DeFi data platforms.
  • Revenue Decline: Ethereum’s monthly revenue has plummeted from $109 million in January to just $7.2 million in March.
  • ETF Outflows: ETH-based ETFs have continued to see outflows, further pressuring the price.

Currently, ETH is trading within a multi-year range and is hovering near its midpoint. If buyers fail to step in soon, ETH risks declining to the range’s lower boundary, potentially dropping below the critical $1,000 level.

What Lies Ahead?

While XRP has enjoyed an extended period of outperformance, the sustainability of this trend remains uncertain. Ethereum, despite its recent setbacks, continues to be a dominant force in the cryptocurrency market. However, for the time being, XRP’s momentum seems firmly intact, making it a cryptocurrency to watch closely in the coming months.

Stay updated on the latest cryptocurrency trends and analysis to make informed investment decisions in this fast-evolving sector.

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