Despite currently navigating a bearish phase, XRP could be poised for a significant price rally, according to analyst JD (@jaydee_757). This prediction stems from the token’s recent retest of a crucial trendline that has served as support for nearly ten years.
The trendline in question, visible on the monthly XRP market cap chart, dates back to 2014 and exhibits an upward trajectory, indicating its tendency to record higher lows over extended periods. Notably, when the token retests this support during downturns, historical data reveals a pattern of substantial price surges.
#XRP – Last two times we tested the 10-year trendline, $XRP 39x – 650x in price w/in a year! We are now testing multi-year trendline!
Can we bounce off trendline to finally break structure?! Do NOT "KNOW WHAT YOU HOLD", 🤦♂️🤣we taking "calculated profits!"
RT/Like for updates!… pic.twitter.com/flIQcDh4Ls
— JD 🇵🇭 (@jaydee_757) February 3, 2024
Read Also: From $100 to $9,322: XRP’s Impressive 10-Year ROI Beats Tesla, Microsoft, Apple, and Visa
XRP Past Retests and Explosive Gains
The first retest occurred in July 2014, with XRP’s market cap plummeting to $21.95 million. However, a swift recovery ensued, propelling the market cap to $865.645 million by December 2014, marking a remarkable increase of approximately 39x in just five months.
A similar scenario occurred in March 2017, where another price decline led to a retest of the trendline. This was followed by an astounding 650x surge, culminating in an all-time high market cap of $128.398 billion in January 2018.
It should be noted that JD had pointed to this 650x surge in another price prediction, expecting XRP to recreate this scenario soon.
Current Retest and Potential Target
The recent bearish trend has triggered a third retest of the support line. While JD refrains from specific price projections, he expresses confidence in XRP experiencing another explosive price increase post-retest. However, based on previous retests, a 39x surge will send XRP to $19.7 and a 650x surge will send it to $329. JD recommends implementing periodic profit-taking strategies as the token ascends.
Addressing XRP Concerns
Another analyst, Dark Defender (@DefendDark), acknowledges a similar trendline. He highlights the trendline’s significance but delves deeper to address common misconceptions surrounding XRP.
He counters concerns about limited use cases by highlighting XRP’s volume growth during bull runs. While the token boasted a $5 billion volume at its 2018 all-time high of $3.84, this figure ballooned to $26.8 billion when it reached $1.9 in 2021.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: XRP Still On Course For $6.7 as Market Cap Maintains 10-Year Trendline Support
Dark Defender also refutes claims that the SEC lawsuit hampered XRP’s growth, citing the token’s surge from $0.17 to $1.96 in April 2021, amid the legal battle. However, this feeling is not shared across the crypto industry, as a pro-crypto lawyer has shared his opinion that the lawsuit hurt XRP’s adoption by major U.S. companies, in turn hampering its growth.
Dark Defender also addressed other concerns in the community, and while the current market climate presents challenges, XRP’s historical performance and analyst predictions suggest a potential for significant price appreciation, even with the ongoing lawsuit.
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