XRP Primed for Price Surge? Analysts See Echoes of 2017 Rally

A financial analyst notes a cyclical pattern emerging for XRP, echoing events that sparked its explosive growth in 2017.

Wizard working its magic on XRP coin.
Created by Kornelija Poderskytė from DailyCoin
  • Analysis has identified a cyclical pattern suggesting an XRP price explosion.
  • A major double-bottom pattern has emerged.
  • Legal challenges remain the final obstacles for XRP.

Remember 2017? The year the cryptocurrency market went wild, with Ripple’s XRP token experiencing a meteoric rise that dwarfed even Bitcoin’s impressive gains. Now, one analyst believes a similar story could be unfolding, with XRP poised for a major surge.

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This isn’t just wishful thinking. A financial analyst on X (formerly Twitter), sees a potential cyclical pattern emerging, mirroring the events that led to XRP’s explosion back in the day.

Will XRP Take Flight Again?

In 2017, XRP skyrocketed a staggering 1,400% over the course of a year, dwarfing Bitcoin’s (BTC) gains of nearly 100% during the same period. Financial analysts suggest a similar trend could be unfolding nearly seven years later.

The analysis hinges on XRP’s double bottom pattern, a technical indicator often resembling a “W” and signaling a potential trend reversal. In 2017, this pattern formed at $0.00514, preceding the price surge to $0.30.

The stars seem to be aligning for a similar breakout in 2024, with XRP forming another double bottom near its current levels. If history repeats, this could propel prices to a staggering $35.2, although more conservative estimates place the peak closer to late 2025.

Despite the bullish outlook, XRP has been trading sideways recently, even experiencing a slight dip of 3% over the past week. This sluggish performance comes despite increasing trading volumes. Currently, XRP sits as the seventh-largest crypto asset, boasting a market capitalization of $25.3 billion. A successful rally could see it challenge for a higher spot.

XRP’s Final Hurdles

The immediate hurdle for XRP appears to be the $0.54 mark. Additionally, Bitcoin’s recent price slump could cast a shadow on XRP’s short-term prospects. However, a report by Santiment suggests this downturn might present a buying opportunity.

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"Patient traders waiting for fading crowd sentiment may finally have their chance to acquire large-cap altcoins like XRP at a 2024 low," the report noted.

While a major price increase is certainly enticing, some roadblocks remain. Despite the 2023 ruling clarifying XRP’s status as a non-security, reaching the coveted $1 mark is still a distant target. Recent reports have cast doubt on this classification, but Ripple Labs CEO Brad Garlinghouse has dismissed such claims as “misleading.”

Only time will tell if XRP can replicate its 2017 performance. However, with a potential legal hurdle soon to be cleared and bullish analysts like Eric in its corner, XRP could be poised for a significant price move in the coming months.

On the Flipside

  • While historical cycles can inform predictions, market conditions can change drastically. The 2017 boom was fueled by a unique set of circumstances that may not be replicable.
  • Double bottom patterns are not foolproof indicators. They can provide insights but shouldn’t be the sole basis for investment decisions.
  • Despite the 2023 ruling, the SEC lawsuit against Ripple Labs is ongoing. A negative outcome could significantly impact XRP’s price and adoption.

Why This Matters

If this cyclical pattern holds true, XRP could see a dramatic price increase, potentially disrupting the current market rankings of cryptocurrencies and offering a lucrative opportunity for investors who capitalize early. This potential surge could reignite interest in the entire cryptocurrency market, similar to the boom of 2017.

XRP has been facing some market volatility recently. This article dives deeper into the reasons behind this and how it has attempted to climb back up:
XRP Price Attempts Comeback Amidst Broader Market Volatility

While XRP grapples with market volatility, is Bitcoin gearing up for a historical repeat? Dive into this analysis of Bitcoin’s potential for July:
Bitcoin July Incoming? Historical Trend Excites Hopefuls

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.