- Analyst Timothy Peterson predicts that XRP has bottomed and could even outperform Bitcoin next year.
- The further performance of XRP will be strongly influenced by the regulatory measures of the USA.
Although Ripple was able to reach numerous milestones in 2020 and the use of payment solutions such as On-Demand Liquidity has risen sharply according to the last quarterly report, many investors were disappointed with the performance of XRP. Still, Cane Island Alternative Advisors analyst Timothy Peterson is bullish for 2021.
XRP will surpass Bitcoin in 2021
Within the last 24 hours, the XRP price has fallen by 0.42% and is now at a price of USD 0.25. On the weekly chart, XRP is up 4.44%, while it has fallen by 1.18% in the last 30 days.
Despite the rather average performance, especially compared to the Bitcoin price, Peterson believes that XRP has bottomed out and could even outperform Bitcoin in 2021 . He stated on Twitter:
I know it doesn’t look like much, but this is the lowest XRP price on the futures market. I think people will be surprised at Ripple’s performance in 2021. It will likely have its best year since 2017, and maybe outperform Bitcoin.
Although Lowest Price Forward is strictly a price trend, I validated this trend with fundamental metrics from @coinmetrics
— Timothy Peterson (@nsquaredcrypto) November 7, 2020
As Peterson explains, he comes to this conclusion after analyzing the fundamentals of XRP. As the analyst MagicPoopCannon discovered, XRP could break out of a falling wedge that it has been following since May 2018. The following diagram shows the chart of MagicPoopCannon.
According to the analyst, XRP could rise to $ 0.77 next year, starting an unexpected rally. XRP was unable to break the strong resistance around the USD 0.33 mark this year and has stabilized at the USD 0.25 mark at this point in time. An important support is at $ 0.22 and $ 0.25, according to Peterson.
Peter Brandt, on the other hand, describes that the current rally of XRP has only followed Bitcoin and the rest of the market and will not last any longer. In his opinion, XRP will continue to decline relative to BTC, as shown in the following chart:
Dead Cat Bounce, jumping up after 32 consecutive red days. The best trading practice is to be the strongest member of a category for long and the weakest for short. Don’t be long the weakest hoping to catch up.
Trader and analyst “Dave The Wave” shared a chart with his community that shows that XRP has reached a “diamond bottom”. This chart pattern shows a trend reversal that, according to the analyst, could occur at XRP with an 80% probability of success. The following chart shows that XRP will not rise in price immediately, but only rise to the USD 0.30 mark in July next year and after successfully overcoming this resistance to USD 0.50.
Which direction XRP will actually take also depends on the further development of politics and regulatory measures in the United States of America. As Crypto News Flash reported yesterday , Ripple has opened a new branch in Dubai, as the location conditions are perfect and there is a clear regulatory framework. Ripple has even been considering relocating its headquarters to London or Singapore for some time.