Can Ripple (Xrp) Do a 500X Again?

Ripple’s native token, XRP, stands out among cryptocurrencies as it failed to reach a new all-time high during the market rally in 2021. While XRP experienced some upward movement on the charts, it was unable to reclaim its peak. XRP achieved its all-time high in early 2018, reaching a valuation as high as $3.3.

In recent days, XRP has been experiencing a rally. As analyzed in a recent article, the asset has already seen a 21% increase compared to its recent low of $0.41. Market participants have maintained a positive outlook, evident by the consecutive green candles on XRP’s daily chart. However, it’s important to note that this recent upward movement is relatively minor. According to data from Messari, XRP’s current value is still more than 84% lower than its peak of $3.3.

XRP Breaks 2-Year Trendline, Sparks Speculation of a Potential Rally

Recently, a chartist known as ‘JD’ took to Twitter to highlight an intriguing development in XRP, likening it to a breakout observed in 2017. Sharing his analysis, he tweeted, “XRP – We just Broke a 2-year trendline!”

In the past, such breakouts have led to significant surges in XRP’s price. According to JD, “In 2017, after a CONFIRMED breakout of a 2-year trendline, we saw a 504x increase in just one year!”

As of now, XRP is trading at $0.5151. A 504x surge from this point would result in a price of $259.6, which appears highly unrealistic.

Since 2018, the market has witnessed a couple of major bull runs, but XRP has failed to reclaim its previous high on either occasion. While XRP has decoupled from the broader market, it does not necessarily indicate a mega pump. Only extraordinary events, such as Ripple going public or a favorable outcome in its legal battle against the SEC, hold the potential to trigger an exponential rally for XRP. Even in such scenarios, XRP would need to surpass $3.3 before aiming for double or triple-digit valuations.

It is important to note that traders often make extremely bullish predictions when asset prices begin to rise. While history has repeated itself in the past, it is crucial to remember that macro-long-term forecasts are inherently imprecise. Therefore, it is wise to focus on the short term rather than being carried away by the bullish sentiment.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.