By Solomon Odunayo
A cryptocurrency analyst, Timothy Peterson, has recently shared an analysis regarding the possible price trend of XRP, the fourth-largest digital currency by market cap, come 2021.
In the analysis, Peterson explores a likely situation where Ripple’s digital token could outperform the first and largest cryptocurrency, Bitcoin (BTC), in the coming year.
He thinks in 2021, XRP would surprise everyone by printing its best performance since the price bull run of 2017.
Captioning an illustrative chart, Peterson shared his view regarding the likely upcoming trend of XRP price via a tweet on 7th November 2020.
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The chart indicates that the price of XRP might have just bottomed in the crypto markets.
Timothy Peterson tweeted, “I know it doesn’t look like much but this is XRP lowest price forward. I think people will be surprised at Ripple’s performance in 2021. It will probably have its best year since 2017 and maybe outperform Bitcoin.”
The analyst further added that the price trend he captioned in the chart was validated using the fundamental metric from the crypto analytics firm, Coinmetrics:
“Although Lowest Price Forward is strictly a price trend, I validated this trend with fundamental metrics from Coinmetrics.”
Although Lowest Price Forward is strictly a price trend, I validated this trend with fundamental metrics from @coinmetrics
— Timothy Peterson (@nsquaredcrypto) November 7, 2020
XRP Seems To Have Broken Out of the Falling Wedge
Based on the current market performance, XRP seems to have broken out of the falling wedge identified back in May by crypto analyst MagicPoopCannon.
In the analysis, Magic had projected that XRP could potentially start a journey to $0.77 if the falling wedge was broken. Below is a screenshot of his chart with updated XRP price data.
From the above chart, it can be deduced that XRP broke above the falling wedge in July of this year and attempted to break $0.33 on two occasions.
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Moreover, XRP is now consolidating between $0.22 and $0.27. The $0.25 price area is currently providing adequate support for the digital asset.
XRP’s current consolidation, like in 2017, could continue throughout the remainder of 2020 thus providing a good entry for those willing to bet on XRP mooning in 2021.