By CCN Markets: One of the rising stars in the Crypto Twitter community, Credible Crypto, made a bold prediction. This user, who has amassed more than 42,000 Twitter followers, believes that Ripple (XRP) will generate a massive run that will catapult the cryptocurrency by over 100x in its next bull cycle.
The trader made this prediction on a Twitter thread on June 15 after seeing the similarities between the accumulation periods of Ripple and leading cryptocurrency bitcoin. According to Credible Crypto, bitcoin went through almost a year of accumulation after the 2014 – 2015 bear winter. It was then followed by a face-melting 122x markup that sent the market to $20,000.
Credible Crypto added that Ripple is currently carving a bottom that matches bitcoin’s accumulation period prior to the 2017 bull run. The trader also noted that the previous cycle sent the cryptocurrency known as “The Standard” plunging to lows of $0.15. This is a 23x plummet from a high of $3.50. According to the pseudonymous account, even the drop resembles bitcoin’s 2013 – 2014 downtrend where the market slid from a high of $1,150 to a low of $57 for a 20x drop.
@CredibleCrypto provides in-depth comparisons between the two market cycles to justify Ripple’s possible surge to $28.
Thus, should XRP follow the footsteps of bitcoin, the cryptocurrency may skyrocket to as high as $28 “which is a very reasonable expectation [in my opinion],” says the crypto trader.
From a technical perspective, the logic behind the prediction is sound. After all, history tends to repeat itself. However, the data provided by the chart of Ripple is so limited that a call of over 100x appears to be a monumental stretch.
What classical charting fails to provide may be compensated by Ripple’s strengthening fundamentals.
Ripple is positioning to dominate the cross-border payments sector by partnering with MoneyGram to the tune of a $50 million. According to MoneyGram Chief Executive Officer Alex Holmes, the company will leverage Ripple’s xRapid product to instantly settle payments 24/7. XRapid works by using XRP as a bridge currency to provide banks with instant liquidity.
With this union, Ripple created massive demand for XRP. People who want to use MoneyGram as a service will have no choice but to convert their fiat currency, USD for instance, into XRP to send money. The person on the other end will then have to convert XRP into another fiat currency, the euro, for instance, to receive the remittance.
To put the gravity of the deal into perspective, most recipients of MoneyGram remittances come from low- and middle-income countries. The World Bank expects remittance flows to these countries to go as high as $550 billion this year. MoneyGram gets a significant share of the remittance money at over $20 billion in the last 12 months.
In short, this deal sets up XRP for widespread adoption. It may not immediately push Ripple to $28, but the strengthening of fundamental development appears to be a big step in the right direction.
This article was edited by Gerelyn Terzo for CCN.com. If you see a breach of our Code of Ethics or Rights and Duties of the Editor, or find a factual, spelling, or grammar error, please contact us and we will look at it as soon as possible.
Last modified: June 14, 2020 9:35 AM UTC