Cardano ($ADA) vs. Ripple ($XRP): Investment Analysis - Is It Time to Invest?

While Cardano ($ADA) has surged over 10% this Friday, Ripple ($XRP) maintains its momentum at $2.40. Should you consider investing in these altcoins? A candid look at two of the most robust community-backed cryptocurrencies.

When examining the core aspects of $ADA and $XRP, one of the most significant advantages for the development teams, as well as for potential investors and traders, is the immense and passionate backing from their communities. But is this enthusiasm enough to propel these digital currencies to new heights?

$ADA on the Rise - Climbs 12% This Friday

Source: TradingView

After experiencing a downward trend for nearly all of 2024, $ADA (ADA/USDT) saw a significant rebound from the support level at $0.00000470, skyrocketing 193% within just a month.

This was followed by a correction where the price pulled back by a healthy 40%. In the past three days, $ADA has surged once more, climbing 12% so far this Friday.

Could $ADA Be a 'Zombie' Asset?

Source: TradingView

However, potential investors should focus on the weekly time frame. If this were a traditional stock company, it might be labeled a 'zombie company'. On this larger scale, the recent price jump hasn't even managed to create a new high in the ongoing pattern of lower highs and lows observed since 2021.

Looking at the Stochastic RSI (a momentum indicator), you'll notice that all short-term time frames have peaked, while the weekly and bi-weekly indicators are trending downward.

$XRP Facing Short-Term Rejection?

Source: TradingView

Short-term charts for $XRP (XRP/USDT) suggest a potential rejection from the descending trendline that originated from the last local peak. The Fibonacci levels show that this trendline aligns with the 0.618 retracement level, a common point for pullbacks.

Is the Upside for $XRP Limited?

Source: TradingView

On a weekly scale, $XRP paints a far better picture than $ADA. Nevertheless, the bulk of its market structure remains at considerably lower levels, with $XRP making sharp spikes during bull markets rather than gradual increases, which isn't ideal.

Currently, the price seems to have reached its peak, with candle bodies closing near the 0.786 Fibonacci level. However, the 0.618 level has been successfully retested. If Bitcoin and the broader cryptocurrency market continue their upward trajectory, why shouldn't $XRP follow suit?

Are There Better Investment Opportunities?

In conclusion, $ADA appears to be in a troublesome downtrend, and only a move above $0.00001570 could signal a reversal. Meanwhile, $XRP remains strong, but is it worth buying given the likely constraints on further gains? The crypto market offers more promising opportunities.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.