According to a crypto analyst, XRP could very well see a rally in the near future.
Despite being one of the worst-performing crypto assets, it has maintained its spot in the top 3 cryptocurrencies by market cap throughout the bear market. So is Ripple ready for its annual rally?
Is Ripple gearing up for a rally?
The analyst, known as Pentoshi on Twitter, believes that Ripple could see its annual rally soon. XRP peaked in 2017 when it reached an all-time high of $3.50 per token. However, it fell to a new low of just $0.10 in March 2020 amidst the Covid-19 pandemic sell-off.
Now, Pentoshi has pointed out that the coin has nearly doubled in value making it the most viable digital asset to see a price surge.
— Pentoshi (@Pentosh1) April 8, 2020
A look at Ripple’s past annual rallies
At least once a year, XRP experiences a huge rally. Although it’s rare that XRP maintains a bull run, we typically see a rally that coincides with Ripple’s annual Swell conference once per year.
We’ve seen an XRP rally at least once a year since the crypto hype bubble.
As the above chart indicates, Ripple reached an all-time high of over $3.50. Although it quickly leveled out, it managed to regain some of its price in the next annual rally in 2018. This rally resulted in a 167% return for investors trading XRP/BTC.
Then, in August 2019 Ripple experienced another pump. However, this rally only resulted in a 50% return.
If the pattern sticks, we’re likely to see even smaller returns this time around. However, the next rally could break the cycle. Sell pressure is running out because of the two-year bear market, and when the resistance breaks XRP could reach 4000 sats – a ±50% gain.
On average, XRP has rallied 555% between each rally, so the potential for the digital asset could be massive if it manages to break through the first 50% target.
Ripple is heading towards a rally that could be huge
According to crypto analyst Pentoshi, all signs show that Ripple could be gearing up for something huge. So, is Ripple ready for its annual rally? Now would certainly be the right time. If XRP breaks through the first 50% target, the coin could seriously be in for something massive – and wouldn’t that be nice to break the monotony?