Crypto analyst Benjamin Cowen shared his strategic approach to investing in XRP, based on his analytical expertise in computational mathematics and engineering. Cowen provided insights into XRP’s price movements, Bitcoin dominance, and key investment strategies that have proven valuable in maximizing returns on altcoins like XRP.

XRP’s Impressive Price Performance

XRP’s price has seen significant movement in the past few months, rising from $0.67 to $2.17, marking a noteworthy surge. Cowen’s analysis highlighted this rise as part of a broader market trend influenced by Bitcoin’s dominance and the relative strength of altcoins like XRP. He explained that during periods when Bitcoin’s dominance is high, altcoins typically underperform against BTC. However, during key market setups, like XRP’s recent “double bottom” formation, the cryptocurrency can experience notable price increases.

Identifying the XRP Setup: Double Bottom Pattern

On November 12th, Cowen identified a crucial technical pattern in XRP’s market behavior: a “double bottom” formation on the XRP/BTC chart. This chart pattern is often associated with a potential price surge, indicating a solid entry point for investors. At that time, XRP was trading at $0.67, and its value against Bitcoin was 771 satoshis.

According to Cowen, this double bottom pattern signaled the right moment to consider XRP for investment, as it showed a strong potential for upward movement. Indeed, XRP’s price rose to $2.17 after this setup, and its value relative to Bitcoin soared to 2200 satoshis.

BTC Dominance and Timing Altcoin Investments

One of the key factors Cowen focused on was Bitcoin’s dominance in the market, which had hit 60% at the time of his analysis. Cowen explained that altcoins like XRP often “bleed” or lose value relative to Bitcoin when BTC dominance is rising. He had predicted this trend over three and a half years ago, and his observations remain relevant for traders.

Cowen emphasizes that during Bitcoin’s dominance phases, holding Bitcoin can be more advantageous than investing in altcoins, as it allows investors to avoid the volatility and downturns often seen in altcoin markets. However, when altcoins like XRP show a strong technical setup, such as the double bottom pattern, they can present excellent investment opportunities.

Key Lesson: Don’t Hold Altcoins for Years

According to Cowen, one of the most important lessons for altcoin investors is to avoid holding assets like XRP for extended periods, hoping for occasional price spikes. Instead, investors should focus on analyzing their altcoins’ BTC pair charts to pinpoint favorable entry points. By timing altcoin investments more strategically—by entering at strong technical setups and exiting when the market shifts—investors can maximize their returns.

Cowen argues that it would have been more profitable for XRP holders to have shifted their investments between Bitcoin and altcoins during periods of Bitcoin dominance, rather than holding XRP for years. His advice emphasizes the importance of active market participation and thoughtful timing.

Conclusion

Benjamin Cowen’s approach to investing in XRP highlights the importance of understanding market cycles, Bitcoin’s dominance, and technical analysis. His strategy focuses on identifying favorable entry points, timing altcoin investments, and understanding when to shift between Bitcoin and altcoins. By adopting a more calculated and strategic approach, investors can navigate the crypto market with a higher potential for success and minimize the risks associated with long-term altcoin holdings.