A prominent market veteran has discussed what he believes was a better winning strategy for trading XRP over Bitcoin rather than holding for years.
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This commentary, which came from Into The Cryptoverse founder Benjamin Cowen, was a direct response to a subtle criticism from another analyst. Originally, Cowen presented an analysis of Bitcoin dominance, which has so far continued to increase, recently hitting 70%, when excluding stablecoins.
How Significant is the Bitcoin Dominance Chart?
Replying to Cowen, analyst “GeoMetric” downplayed the importance of looking at the Bitcoin dominance chart. According to him, if he had paid attention to Bitcoin dominance, he would have missed entering the XRP market when XRP traded for $0.35. Notably, this was a perfect opportunity to buy XRP.
GeoMetric argued that traders should see the Bitcoin dominance chart as a market gauge, not a factor that triggers the next price direction. He suggested that by the time the dominance drops, XRP would have already reached greater heights.
In response, Cowen insisted that he identified the XRP rally from November 2024 early enough. However, he said while he caught the rally soon enough, he did not “sit in XRP for years” mocking the Bitcoin dominance chart while Bitcoin outperformed XRP all that time.
For context, since January 2018, when XRP hit its all-time high of $3.8 and then corrected, Bitcoin had continued to outperform the altcoin. Specifically, the XRP/BTC chart, which traded at a high of 0.00023 in January 2018, collapsed to a low of 0.00000674 by early November 2024. This marked a 97% decline for XRP against BTC.
Cowen Reveals His “Winning Strategy”
Cowen noted that during this downtrend, the XRP/BTC pair formed a double bottom. He identified this signal and confirmed that XRP was on the verge of breaking out against Bitcoin. Notably, this was an ideal time to enter the XRP market, prompting Cowen to make his move.
He used this narration to berate some XRP investors who remained bearish on Bitcoin dominance since 2022, predicting that XRP would break out. However, all this time, Bitcoin continued to outperform while they stayed with XRP, missing out on the gains BTC presented. Cowen said these investors now feel they were right because of the November 2024 breakout.
According to him, the ideal “winning strategy” would have been to enter the Bitcoin market from 2022 to 2024, while BTC outperformed XRP, and then converted some Bitcoin holdings to XRP when the double bottom on the XRP/BTC chart was spotted. This would have allowed the investor to win on both sides: from Bitcoin’s 2022-2024 run, and XRP’s breakout.
At press time, XRP trades for $2.18, while Bitcoin changes hands at $107,700. This brings the XRP/BTC pair to a current figure of 0.00002024. Notably, at the current position, XRP is down 8.9% against Bitcoin this year, but up 200% since the November 2024 low.
DisClamier:
This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect @Lachakari_Crypto opinion. Readers are encouraged to do thorough research before making any investment decisions. @Lachakari_Crypto is not responsible for any financial losses.