Could XRP Duplicate Its 2017 Success? Analyst Predicts 1,250% Growth

As XRP revisits an important support level, analysts are speculating that the altcoin might be setting itself up for significant growth in the upcoming months, potentially mirroring the strategy it employed in 2017.

Key Takeaways

Analysts suggest XRP could see significant price increases, reminiscent of its 2017 performance.
XRP is trading within the $2.05-$2.35 range, with recent price action showing signs of potential reversal.
Any loss of the critical $1.80 support could signal a deeper retracement.
ChartNerd warns of the importance of closing the current quarter positively to avoid a bearish trend.

Solana, XRP

XRP Poised for Significant Growth

On Friday, XRP hit a 12-day low, dropping to around $2.02 before making a recovery. For nearly two weeks, the cryptocurrency has been trading in the range of $2.05 to $2.35, fluctuating mostly in the lower half of this range.

Sjuul from AltCryptoGems pointed out that XRP "is starting to appear more promising, especially following that bullish market structure break with a new higher high." The altcoin has been on a downward trend since August, consistently registering lower lows and lower highs. However, this trend was disrupted as it achieved a higher high for the first time in months after its rally at the beginning of the year, signaling a possible trend reversal. Sjuul cautioned, "Now, we must sustain this bullish structure at all costs and form a higher low during the next dip."

In a similar vein, market analyst ChartNerd drew attention to the striking resemblance between XRP's current actions and its performance in 2017. In a post on X, he emphasized that XRP appears to be repeating the formula that propelled its price to new heights in 2016-2017.

XRP
XRP reflects its price movements from 2016-2017. Source: ChartNerd on X

Back then, XRP experienced a classic breakout from a multi-year symmetrical triangle formation, subsequently undergoing months of ABC consolidation before surging by 1,500%. Currently, the cryptocurrency is mimicking a similar symmetrical triangle breakout and is said to be in Wave C of its consolidation period.

The analyst noted that if XRP breaks below the critical support line at $1.80, a more extensive Wave C retracement might occur. However, he believes that "the repetition of cycle formulas suggests XRP is gearing up for an expansion towards $8/$13/$27," which would represent a significant increase of 300% to 1,250% from its current price levels.

Q1 Approaching: Crucial for XRP’s Future

Despite a positive outlook, ChartNerd issued a notable warning concerning the next two months. He stated, "XRP has just over two months to negate this three-month bearish Heikin-Ashi candle formation," or it risks facing a substantial correction.

In his video analysis, he explained that historically, whenever XRP experienced large rallies followed by a bearish candle on a three-month timeframe, it typically signaled the onset of a downtrend or a prolonged consolidation phase.

For instance, in 2014, after a significant price jump, XRP printed a bearish candle on the three-month scale, leading to an extended correction and consolidation period "that lasted several years," he remarked.

"This happened again in 2018. We saw another massive rally for XRP, and as soon as we printed a three-month bearish candle in the Heikin-Ashi formation, we entered into a bear market," ChartNerd added.

In 2021, XRP exhibited a similar pattern. Currently, it is on the verge of forming a red candle in this timeframe and has around two months and 16 days left to finish the quarter positively.

"We have until March to close this candle successfully. What we don't want to see is a full-bodied three-month Heikin-Ashi candle, as this would likely trigger a deeper correction lasting six to twelve months," concluded the analyst.

As of now, XRP is trading at $2.05, reflecting a 1.7% decline over the week.

xrp, XRPUSDT
XRP’s weekly performance chart. Source: XRPUSDT on TradingView