XRP Leads Crypto Market Rally as Bitcoin Enters Oversold Territory, Analysts Note

The cryptocurrency market has been moving up in the last 24-hour period, in a rally that analysts believe is being led by XRP, the second-largest cryptocurrency by market cap, and not by the flagship cryptocurrency bitcoin.

According to CryptoCompare data, BTC is currently up by about 1.22% as it’s trading at $3,470, while XRP is up by little over 10.8%, as it’s trading at $0.032. The cryptocurrency’s market cap is now at $13 billion, behind bitcoin’s $60 billion.

XRP's price performance in the last 24-hour period

Behind XRP’s move up could be various factors. Recently, Brussels-based global banking giant SWIFT integrated R3’s platform with its Global Payments Innovation (GPI) solution, in a move its CEO Gottfried Leibbrandt clarified is meant to explore potential interconnectivity between cross border payment solutions.

Earlier, as CryptoGlobe covered, XRP became the first settlement mechanism to be supported on R3’s global payments app Corda Settler. Ripple and R3 have, in the past, also partnered with various financial institutions – including Barclays and the Royal Bank of Canada – to test XRP for cross border payments.

While Libbrandt has recently revealed banks are hesitant when it comes to cryptocurrencies because of the volatility associated with them, some of XRP’s supporters believe that as SWIFT partnered R3 it may in the future test XRP.

As a result, the cryptocurrency jumped before other cryptos, which according to eToro senior market analyst Mati Greenspan saw it lead the crypto market rally.

Bitcoin Enters Oversold Territory

Bitcoin has fallen behind as it’s currently down by about 9% against the second largest crypto. Speaking to MarketWatch Naeem Aslam, chief market analyst at Think Markets UK, noted that the cryptocurrency failed to break above its 50-day moving average, showing the bulls lack momentum.

He added, however, tits Relative Strength Index (RSI), a momentum indicator that measures the magnitude of recent prices changes, shows it’s in oversold territory.

Having said this, things could change in the coming days because of the Relative Strength Index (RSI) has dipped into oversold zone. A reading near 30 shows that the price is oversold and it generally brings new buyers in the market and reading near 70 sends the message that it is overbought.

Most top cryptocurrencies are currently in the green. Ether, the third-largest crypto by market cap, has risen 3.3% in the last 24-hour period, as it’s trading at $109.1, while LTC, a crypto created as the silver to bitcoin’s gold, is up 2.7% to $31.8.

EOS, which recently saw reports suggest it has more active users than ETH, is up 3% to $2.37, while Bitcoin Cash moved up 6.1% to $117.

Morgan Creek Digital's Anthony Pompliano Explains Why He Is So Bullish on Bitcoin

Siamak Masnavi

On Tuesday (February 25), Anthony Pompliano (aka "Pomp"), a co-founder of crypto-focused asset management firm Morgan Creek Digital Assets, gave an interview -- to CNN's Julia Chatterley -- during which he extolled the virtues of Bitcoin.

Pomp focused on two main aspects of Bitcoin:

1. Bitcoin's Proof-of-Work (PoW) Consensus Mechanism and Its Energy Costs

He told Chatterley that Bitcoin is "the most seure computing network" in the world, and "it is going to take electricity or power consumption in order to power that security."

However, he said we don't need to get too alarmed by this since Bitcoin miners are "financially incentivized" to "find the cheapest power sources" because "that's how they make money."

Then, he pointed out that the cheapest form of energy is renewable energy, and so that is what they will try to use to power their mining hardware. In fact, he said that based on the studies he has seen, 60 to 80 percent of the energy being used is renewable.

2. Bitcoin's Store of Value Use Case 

"I think that store of value is really important. You have to have store value before you can have medium of exchange. 

"The store of value comes down to two things. One is security -- it can't disappear, it can't be hacked, etc.; and Bitcoin being the most secure computing network in the world, it is very secure...

"When it comes to price, what you want to see is, over long periods of time, either you're preserving your wealth, so the price stays flat, or it continues to increase.

"The monetary policy of Bitcoin relies on one thing: supply and demand economics -- artificially capped supply, demand increases, price will go up in U.S. dollar terms. And so, again, if you zoom out, over last decade, it's the best performing asset, over the last 12 months, up 150%, in the last you know what six weeks or so, it's up 30% or so.

"It's continuing to do exactly what it's kind of built to do. Now, there's high volatility on an intraday basis... but again people who put their wealth... in Bitcoin have been rewarded very well with this store of wealth thesis. And so we tend to think that the non-correlation with traditional assets will continue to be a valuable kind of aspect of Bitcoin."

Other Bitcoin-Related Topics

Pomp also responded to legendary billionaire investor Warren Buffett's most recent criticisms of Bitcoin by saying that although Buffett is "one of the best investors of all time," when it comes to technology, there are "better people to listen to." 

Finally, with regard to central bank digital currencies (CBDCs), here is what he had to say:

"These central back digital currencies are all coming, and really what I think people need to understand is all of the central back digital currencies are simply taking the existing monetary policy and changing the technology form factor.

"What Bitcoin does is it actually is a different monetary policy. It's not a fiat inflationary type model, and so ultimately we're going to have as a competition of currencies, but it's not going to be a competition on technology...

"We're going to have a competition of monetary policy... We believe that the Bitcoin monetary policy is superior to central bank monetary policies, and ultimately Bitcoin will be the winner, and will be the next global reserve currency."