I just reviewed the XRP/BTC chart and something interesting is happening. According to what analysts are commenting, the monthly chart is about to break above the Ichimoku cloud for the first time since 2018 — which is quite rare. If that breakout is confirmed on the long-term chart, theoretically XRP would be positioned to surpass Bitcoin in terms of relative strength.

Now, in the short term, the movement was ugly. XRP plummeted from $2.39 down to $2.21 with very high volume (256M, almost 142% above average ). But here’s the interesting part of the 1-hour chart: after that low, demand started absorbing the selling. The price tried to recover but stalled at $2.31-$2.32, which was the support that had been broken. Buyers have been defending that range several times, suggesting a base is forming.

The chart remains within a descending channel, so the short term remains bearish. But if XRP manages to recover that $2.31-$2.32 range and hold $2.21 as support, then that volume liquidation begins to look like a typical shakeout followed by a retest. In that scenario, the chart would make its way back toward $2.39.

Another thing to monitor is the XRP/BTC chart. If that Ichimoku breakout is confirmed on the monthly chart, it increases the chances that declines in XRP will be bought more aggressively during risk rotations. For now, $2.21 is the line to watch.