XRP hasn’t done too hot over the past few months, both in terms of its performance against the U.S. dollar and against Bitcoin. Even over the past year, the third-largest altcoin has collapsed by 50%, underperforming the leading cryptocurrency by a massive margin.
Despite this, an analyst is starting to believe that the price of XRP is ready to jump, looking to a historical trend that indicates that bulls are poised to take over.
XRP Preparing to Burst Higher, Analysts Say
Analyst Michael Van De Poppe, a contributor to CoinTelegraph and a trader at the Amsterdam Stock Exchange, recently remarked that he believes XRP may be on the verge of posting 175% gains in the coming months.
The analyst posted the chart seen below, in which he notes that he believes XRP’s current price action is very similar to the bottoming pattern seen in December of 2015 and January of 2016, which was followed by a massive spike to pre-crash levels. He added that massive downtrends on altcoin charts are on the verge of being “broken down,” setting the stage for strong reversals to the upside.
He said should the current trend play out as it did in the previous cycle, meaning XRP will need to hold the $0.14-$0.17 range, it could surge as high as $0.473 — 175% higher than current prices — by the middle of 2020.
If $0.14 doesn’t hold, however, analysts will fear the worst. Analyst Capo of Crypto identified this region as a region of key historical support, one where a bottom must form as not to perpetuate the downtrend that has plagued XRP for months.
Short-Term Bearish Pressure?
There may be some short-term selling pressure though.
Per previous reports from Ethereum World News, yesterday Twitter account “Whale Alert” spotted the below transaction: the XRP address designated as the Ripple Escrow wallet, which regularly releases portions of a large token lockup, transferred 200,000,000 XRP — currently valued at $38.1 million — to an address owned by Ripple Labs, the fintech company using the cryptocurrency and its respective ledger to improve financial services.
🚨 🚨 🚨 200,000,000 #XRP (38,116,032 USD) transferred from Ripple Escrow wallet to Ripple