How Will XRP Benefit From Bitcoin Crossing $110,000 to Form a New High?

XRP has been closely following Bitcoin’s price movements, benefiting from a strong correlation between the two assets.

With Bitcoin hovering near $110,000, XRP is seemingly poised for a potential rally. However, market conditions and investor sentiment will play a crucial role in its price trajectory.

XRP Follows Bitcoin

XRP is currently showing a strong correlation of 0.91 with Bitcoin, reflecting how the price movements of the two assets are closely linked. Historically, when XRP’s correlation with Bitcoin weakens, the altcoin experiences price declines. However, as the correlation strengthens, XRP tends to benefit from Bitcoin’s upward momentum.

This correlation is especially promising as Bitcoin is hovering around the $110,000 mark, with the potential to push toward a new all-time high (ATH). As Bitcoin moves upward, XRP is likely to follow suit, enabling a surge in price.

XRP Correlation To Bitcoin. Source:  TradingView

XRP’s macro momentum is showing strong signs of bullishness. The Relative Strength Index (RSI) is currently sitting above the neutral mark, indicating that the altcoin is experiencing increasing buying pressure. This positive shift in the RSI suggests that XRP’s price could continue to rise in the short term, especially with the broader market conditions favoring upward movement.

As the RSI stays in the bullish zone, more investors are likely to see XRP as a strong contender for growth, further validating its potential. If this momentum continues, XRP will likely gain enough strength to break through key resistance levels and move toward higher price points.

XRP RSI. Source:  TradingView

XRP Price Rise To Continue

XRP is currently priced at $2.29, having risen 9.3% over the past week. It is holding above the $2.27 support level, looking poised to bounce and continue its upward movement. If XRP successfully holds this level, it could rise toward the next resistance at $2.38.

Flipping $2.38 into support would provide a strong foundation for XRP to push toward $2.50 in the longer term. This would indicate that the bullish momentum is fully in place, paving the way for a continued upward trend in the coming months.

XRP Price Analysis. Source:  TradingView

However, if XRP fails to hold the $2.27 support, it could slide to $2.20 or even $2.13. A drop below these levels would invalidate the bullish thesis, erasing the recent gains and pushing the price lower. This decline would signal a shift in investor sentiment and mark the end of the current recovery.