XRP Has Potential for 900% Rally: A Look at the Similarities Between Now and the 2017 Surge
XRP has posted a one-month candle pattern similar to late 2017, suggesting that it could potentially record a 900% rally in the coming weeks. This pattern involves a breakout that the bears quickly sniff out before the cryptocurrency regains momentum towards the end of the year and surges.
Tony Severino, a technical analyst, and the founder of Coin Charts, shared his analysis on Twitter, noting the resemblance between the current market trend and XRP’s performance in 2017. Back in 2017, the coin’s surge began in August when it started the month at $0.168, recording significant gains to end the month over 50% higher. Though September saw a dip, it was followed by only a slight decrease in October. The following two months, November and December, witnessed immense growth, with the coin gaining over 500% in December and reaching a new record high in February the following year at $3.84.
This year, July marked XRP’s best month, hitting $0.72 after Ripple achieved a significant victory in its lawsuit with the SEC. However, the crypto experienced a dip in August, followed by a slight decrease the next month. In October, XRP started to recover, and this upward momentum has continued, with the cryptocurrency trading at $0.6577 at press time, gaining 8.5% in the past week and 33% in the past month.
Severino believes that thinning order books and the unwinding of shorts are among the factors that could fuel the next bull run for the coin. Fear of missing out (FOMO) could also play a significant role, with XRP being the lowest-priced token in the top five, making it the ideal entry token for FOMOing investors.
Additionally, external factors such as the Bitcoin halving could also benefit XRP. Severino expects everything to peak right before the halving, leading to heightened market activity.
However, despite the projected long-term success of XRP, whales have been observed transferring hundreds of millions of the cryptocurrency to exchanges, likely to sell them off. Despite these potential challenges, XRP’s significant strength lies in its dedicated community, which has stood by the token through all its SEC trials and Ripple’s efforts to expand the use cases of the cryptocurrency.
Furthermore, Ripple’s partnerships with banking giants HSBC and Standard Chartered for digital asset services are indicative of the growing acceptance and adoption of XRP. HSBC is working on building digital asset custody and leveraging infrastructure provided by Metaco, a Ripple-owned company.
It’s important to emphasize that the performance of XRP, as with any other cryptocurrency, is highly volatile and speculative. Whales moving large amounts of XRP to exchanges, the potential surge of the crypto, and significant partnerships could impact the market in unpredictable ways. Therefore, investors should conduct thorough research, exercise caution, and consider their financial situation before engaging in trading or investing in XRP or any other cryptocurrency.