Introduction
In 2019, altcoins like XRP didn’t perform as well as expected. While Bitcoin (BTC) saw a rise of over 90%, starting the year at $3,000 and now trading at $7,200, several leading cryptocurrencies suffered losses. Despite record gains in various asset classes, including precious metals and stocks, Ethereum lost 18% and XRP plummeted by 47%, according to Bitcoin educator Jimmy Song. However, some analysts believe that altcoins are on the verge of a comeback.
XRP Indicators Point to an Impending Bitcoin Revival
Prominent technical analyst, Dave the Wave, who accurately predicted the decline of Bitcoin prices to the $6,000 range months ahead of time, recently posted a chart on Twitter indicating that the XRP/USD chart displays signs of a bottom formation. Examining the entire price history of XRP, Dave the Wave highlights a distinct descending wedge pattern within a larger descending triangle. He also points out that the Moving Average Convergence Divergence (MACD) currently resembles the pattern observed before XRP experienced a significant price surge in 2017, resulting in a thousand percent increase.
According to the chart’s implications, XRP is on the cusp of breaking out from the mentioned triangles in a strong upward movement.
Positive Signs Echoed by Other Analysts
Dave the Wave’s observation isn’t the only one pointing towards a positive future for XRP. Analyst Michael Van De Poppe, a trader at the Amsterdam Stock Exchange, previously suggested that the cryptocurrency would surge by 175% in 2020.
Unlike Dave, Van De Poppe disregarded technical data and focused on price action trends to identify fractals or recurring patterns in the charts. His analysis revealed that the recent price action of XRP bears a striking resemblance to a bottom formation pattern that occurred between late 2015 and early 2016. This was followed by a strong 125% surge to pre-crash levels.
Based on these price movements, it is possible that XRP could be traded at $0.473 by mid-2020, which represents a 175% increase from current prices.
Ripple’s Positive News Cycle as a Potential Catalyst
Dave the Wave’s observation of XRP’s bottom formation comes amid a wave of positive developments for Ripple Labs, the San Francisco-based fintech company closely associated with the cryptocurrency.
For those who may have missed it, the company recently secured a substantial investment from a consortium of firms. The SBI Group, a Japanese financial giant, and two other companies collectively contributed $200 million to Ripple’s Series C funding round. This investment raised the fintech upstart’s valuation to $10 billion, surpassing WeWork’s $8 billion valuation.
Ripple is likely to utilize these funds to expand its operations and promote the adoption of its services, some of which involve utilizing XRP.
In conclusion, while XRP struggled in 2019, signs are emerging that it could experience a significant price increase. Analysts such as Dave the Wave and Michael Van De Poppe, along with positive developments for Ripple Labs, suggest that a Bitcoin Revival could be on the horizon for XRP.
