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Ripple vs Bitcoin: what will a new bull market bring to these two major coins in October 2020?

By Alexandra Pankratyeva

12:03, 29 September 2020

Ripple vs Bitcoin

October is believed to bring us a new bullish crypto trend. According to the latest survey, conducted by crypto asset insurance company Evertas, institutional investors are going to raise their stakes in major cryptocurrencies, including Bitcoin and Ripple, expressing bullish views on the crypto market performance this Autumn.

Crypto market fundamental analysis

Before delving into XRP vs BTC price action, let’s analyse the general state of the crypto market in October. 

According to the latest news, we are entering another long-term bullish crypto trend. The Evertas survey, which involved 50 institutional investors holding over $78bn in digital assets in the United Kingdom and the USA, has revealed that the crypto market will steadily grow and offer better liquidity, hedge funds will increase their crypto holdings and the regulation will get much better in the near future. 

The respondents also pointed out several obstacles regarding crypto institutionalisation, expressing concerns over the existing infrastructure with lack of insurance for crypto assets and compliance procedures that still need to be addressed.

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Ripple vs Bitcoin: a positive shift in the market sentiment

The overall crypto market sentiment has recently shifted from fearful to neutral, after an 11 per cent surge in Bitcoin price from $9,840 at the beginning of September to $10,950 on September 28, 2020. 

Analysts believe the world’s most valuable cryptocurrency, BTC, is going to lead the start of a new bullish crypto trend. If the BTC/USD pair continues to trade above $10,500 there is a solid chance that it can start moving higher to $12,000. 

Despite the recent hack of a major cryptocurrency exchange KuCoin on September 26, the price of Bitcoin was not affected much. This can be considered as a positive signal for the crypto market’s maturity. 

Looking closer at the Bitcoin price chart, we can highlight several important levels for investors to watch. After the BTC price dropped below $11,100 - $11,300, a new support was established at $10,000. Meanwhile, $11,100 - $11,300 zone turned out to become the new upper resistance area.

It seems like Bitcoin has already managed to break the $10,800 barrier, which was considered a crucial hurdle to take. Therefore, the $11,100 -$11,300 zone is the final price area left before continuation of the bullish movement. If Bitcoin breaks this major resistance area, it will move up to test $12,000-12,400.

Bitcoin’s ups and downs have always influenced the altcoin market, including Ripple, the fourth-largest cryptocurrency by market capitalisation. 

At the moment of writing, XRP is traded at $0,243 with a market capitalisation of more than $11bn. It is worth noting that, within the past 24 hours, the Ripple price made a significant 5 per cent hike, showing $1.8 bn in trading volume.

Since August, the Ripple price has formed a descending channel, registering insignificant uptrends within its boundaries. Usually, when the price keeps trading within the descending channel formation during such a long period, there is a strong chance for a bullish breakout to occur.

If the XRP takes its nearby resistance at $0.25 in a couple of days, there is a solid chance for Ripple to move forward to the next target near the resistance level of $0.27. 

ETH/USD

3,279.22 Price
-0.260% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 1.75

BTC/USD

93,199.40 Price
-2.070% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 50.00

US100

21,285.00 Price
+0.050% 1D Chg, %
Long position overnight fee -0.0234%
Short position overnight fee 0.0012%
Overnight fee time 22:00 (UTC)
Spread 1.8

XRP/USD

2.14 Price
-2.900% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01068

The technical indicators also look positive. The MACD had recently shown a bullish crossover and indicated that the XRP price was ready to move up. The RSI indicator shared a similar sentiment, returning to the neutral area after having spent some time in the oversold territory.

Bitcoin vs Ripple: what is the difference?

What is the difference between Bitcoin and Ripple? Just to clear it up, let’s remember the major distinguishing feature between the two coins. While BTC is a cryptocurrency designed as a means of payment for various services and goods, Ripple is intended as a payment settling, remittance system and currency exchange for payment networks and banks.

XRPs are used on the Ripple network to simplify money transfers between currencies. Traditionally, USD is used as the usual currency for converting between different currencies, which involves exchange fees and requires significant time – up to three days to process the transfer between accounts in different countries.

Converting the transfer value into XRP rather than US dollars will help to eliminate exchange fees and reduce payment processing to seconds. Today several major international banks including Santander, the Commonwealth Bank of Australia and 61Japanese banks are implementing and trialling applications utilising the Ripple Network payment system.

Bitcoin vs Ripple: which is a better investment?

Ripple vs Bitcoin investment, what to choose now? Well, Ripple has definitely gained a lot of momentum recently with a growing list of organisations adopting and using it on a permanent basis. 

Some analysts share a view that Ripple could soon outperform Bitcoin, Ethereum and the rest of the crypto market. XRP is always included on the lists of cryptocurrencies to watch in late 2020 and early 2021.

If 2019 was the year of Bitcoin, 2020 the year of Ethereum, 2021 could be all about XRP. The Covid-19 pandemic has revealed the necessity for a fast, secure, digital cross-border payment network, which is capable to work interchangeably with other assets – exactly what Ripple offers.

Ripple’s long-term technical analysis also suggests it is time for XRP to shine. Actually, all the top three – Ripple, Bitcoin and Ethereum – are looking bullish in the long-term perspective. However, XRP stands out of the crowd. 

If you compare Ripple against Bitcoin, XRP rarely outperforms BTC, but when it does, it does it significantly. In January 2018, XRP hit its all-time high of $3.84, rising from $0,221 in just one month. 

Lately, Ripple has fallen back to almost a flat baseline, while Bitcoin has made a decent recovery. Next might be Ripple’s turn to recover. 

Still wondering, whether to choose Ripple or Bitcoin? Try both. The current market environment suggests that decentralised finance is a much-desired alternative to the traditional financial system and big banks know that. Ripple, together with the world’s leading crypto Bitcoin, could be at the forefront of the upcoming crypto movement.

Markets in this article

SANe
Banco Santander
4.320 USD
-0.065 -1.490%
BTC/USD
Bitcoin / USD
93199.40 USD
-1972.95 -2.070%
XRP/USD
Ripple / USD
2.14092 USD
-0.06383 -2.900%

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