Ripple and Ethereum have formed divergent chart patterns, raising the hopes that the former will become the second-biggest cryptocurrency this year.
Ethereum (ETH) traded around $1,837 at last check on Saturday, while Ripple (XRP) was stuck at $2.20. Yet, both prices were much higher than their respective year-to-date lows.
The two have a market cap of $220 billion and $150 billion, respectively.
Chart patterns show that the XRP price may go parabolic soon, while Ethereum may crash to as low as $1,000.
Ethereum price technical analysis
The daily chart shows that Ethereum price formed a double-top pattern at $4,086, with a neckline at $2,140, the lowest level on Aug. 5 last year. A double-top often leads to a strong, bearish breakout.
The price target of this pattern is estimated by measuring the distance from the double-top to the neckline. In this case, the distance is about 47%. Measuring this distance from the neckline brings the target price at $952.
The case for a bearish breakout is strengthened because it has struggled to cross the resistance at $2,000 and has formed a rising wedge, which is made up of two ascending and converging trendlines.
Ethereum’s market cap will be about $120 billion if it drops to the psychological point at $1,000.
XRP price has bullish patterns
The XRP token has also formed two chart patterns that may lead to a strong bullish breakout over time. It has formed a giant bullish pennant pattern on the daily chart. This pattern has a vertical line and a symmetrical triangle pattern. A bullish breakout normally happens when these two lines are about to converge.
XRP has also formed a falling wedge pattern and has remained above the 100-day moving average. These signs point to an eventual rebound, with the next target being the year-to-date high of $3.4. Such a move will push its market cap to almost $200 billion.
Fundamentally, XRP has more catalysts than Ethereum. The SEC is likely to approve a spot XRP ETF later this year, while the Ripple USD (RLUSD) stablecoin is gaining market share as its market cap rose to over $293 million.
Therefore, if the ETH and XRP patterns work out, there is a likelihood that XRP will become the second-biggest cryptocurrency by the end of the year.
