XRP may soon be ready “pop off” and go on one of its “once a year” rallies the asset is known for, according to one cryptocurrency analyst.
The analyst points to the altcoin nearly doubling in value in sats as the most logical target for the surge. Is Ripple finally ready to recoup some lost gains?
Crypto Analyst: XRP Ready For Annual Rally on Bitcoin Trading Pair
XRP has remained locked in the top three cryptocurrencies by market cap alongside Bitcoin and Ethereum throughout the bear market, despite being among the worst-performing crypto assets in the market.
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The third-ranked cryptocurrency peaked in late 2017, reaching over $3.50 per token before falling by over 95% to a low of just 10 cents this past month as coronavirus fear and panic spilled into financial markets, causing a massive selloff.
After such an incredible, over two-year-long fall from the top, XRP is finally showing signs that it is ready to “pop off” once again, and potentially go on one of the asset’s annual rallies, according to one crypto analyst.
— Pentoshi (@Pentosh1) April 8, 2020
Every Dog Has Its Day: Stacking Up Ripple’s Recurring Yearly Rallies
It’s rare that XRP is able to sustain a strong rally. Not only are investors seeking to sell the asset at the first glimmer of recovery after spending more than two years underwater, Ripple executes themselves add selling pressure to the market to fund regular company operations.
But at least once per year, typically coinciding with Ripple’s annual Swell conference, XRP experiences a massive pump.
Dating back to the crypto hype bubble, XRP has at least one per year had a powerful pump.
The first was in the above chart can be seen in late December 2017, propelling Ripple to an all-time high of over $3.50, or 23,000 satoshi on the Bitcoin trading pair.
The next pump took place in 2018, resulting in an explosive 167% return for XRP investors on the XRP/BTC trading pair.
Again in 2019, Ripple had another pump, but only resulting in a 50% return. Each time following the asset reaching its all-time high has resulted in decreasing gains with each annual rally.
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However, the next major rally could be incredibly explosive now that sell pressure is running out following over two years of downtrend.
When resistance finally breaks, XRP’s first target would be 4000 sats, or roughly a 50% climb, mimicking the performance of the 2019 pump. However, if that target is taken out quickly, more explosive upside could result from over two years of a downtrend.
On average, XRP has rallied 555% between the three rallies, showing just how high the asset could potentially rise if the first 50% target is taken out.
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