In the wake of the latest surge to the $0.93 territory, the XRP market remains uncertain and indecisive. However, market analyst CoinsKid has emerged with a price projection for XRP, suggesting a potential drop to the $0.54 zone before a significant rally to $6 by the end of this year.
CoinsKid’s analysis takes into account historical patterns observed in XRP’s price movements, particularly focusing on the year 2020. According to the analyst, the asset seems to be displaying a similar way this year. In 2020, XRP experienced a notable rally of 219%, soaring from a low of $0.2453 in the second week of November to a high of $0.7841 towards the end of the month. Following the impressive surge, XRP encountered strong resistance, leading to intermittent declines over the next five weeks.
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This was followed by a discouraging retracement to a low of $0.1729 in late December 2020, partly influenced by the SEC’s lawsuit filed on December 22, 2020. However, XRP managed to stage a remarkable recovery, resulting in an impressive upsurge and reaching a high of $1.9695 in April 2021. This represented a staggering 1,039% increase from the late December 2020 low of $0.1729. Despite facing resistance at the price territory, XRP eventually settled at the $0.9380 level.
Currently trading at the $0.7310 level, XRP has experienced a 22% decline from its recent high of $0.9380. Market watchers have noticed the absence of any significant signs of another upsurge, leading some to believe that the rally might be approaching exhaustion.
CoinsKid, however, thinks that the retracement is not yet complete, and XRP could potentially experience a further decline, following an A, B, and C correction Wave pattern. The analyst sets a target price of $0.5401 at the least for this retracement phase. Despite this, CoinsKid views this retracement as an opportunity for investors to acquire more XRP tokens before the next upward movement.
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The next rally, according to CoinsKid’s analysis, could propel XRP to revisit its previous high of $1.9 witnessed in April 2021. It is expected that the asset might face resistance at this level. However, once it breaks above this resistance, CoinsKid predicts that XRP’s trajectory could lead to a price of $6 by the end of this year. This would represent a substantial 720% increase, though still lower than the remarkable rally experienced in 2021.
Investors and market participants will be closely monitoring XRP’s price movements in the coming months to see how CoinsKid’s predictions unfold and whether historical patterns continue to play out in the cryptocurrency’s price chart. As always, caution and thorough research are advised before making any investment decisions in the volatile cryptocurrency market.