XRP is gearing up to break out of a downtrend it has been caught in since 2018, with a top XRP community figure projecting an eventual rally to $10.
XRP’s retracement from the recent high has not impacted investors’ confidence in the asset. Amid the bearish correction, prominent figures are projecting an imminent rally should XRP successfully break out of its multi-year downtrend.
One such individual is Alex Cobb, a prominent XRP community figure. Cobb called attention to the downtrend in a recent post, emphasizing that XRP investors have continued to fill up their bags in hopes of an eventual breakout.
#XRP We have waited 6 years for this moment, stacking up our bags as much as possible. Some could argue that history states one more final shakeout before the the sleeping giant awakes.
When we get there, don't let people call you "lucky"
XRP rewards brutal patience.
— Alex Cobb (XRP) (@AlexCobb_) August 6, 2023
Citing data from the accompanying monthly chart, Cobb noted that XRP holders have remained resilient for nearly six years as they continued to await a breakout. ‘When we get there, don’t let people call you “lucky,”‘ he charged.
Notably, the chart reveals that XRP has been caught in this downtrend since it dropped from the all-time high in January 2018. The downward trend has prevailed through multiple cycles, extending to the current period. However, historical data suggests a breakout is on the horizon.
The Previous Downtrend
It bears mentioning that XRP experienced a similar downtrend as far back as 2014 when it collapsed from the high of $0.0614 in December 2013. The ensuing downward trendline persisted for four years, with a breakout coming up in 2017.
Interestingly, XRP observed a series of ups and downs before engineering the breakout. These patterns are categorized into five waves, with the last wave characterized by a “final shakeout.” The breakout occurred shortly after this final shakeout.
The shakeout resulted in five consecutive months of persistent declines from October 2016 to February 2017. This bearish turn of events fueled apprehensions at the time. However, XRP eventually broke out in March 2017, rallying to the $3.31 all-time high in January 2018.
XRP Faces Potential Shakeout
Cobb emphasized that XRP will face this final shakeout before staging the breakout. Notably, the first four waves have priced in, with the fourth wave resulting from the asset’s recent mild recovery campaign.
XRP is expected to print months of losing candles before soaring by astronomical margins. “Some could argue that history states one more final shakeout before the sleeping giant awakes,” Cobb remarked.
The influencer projects a price target of $10 should this rally materialize. At XRP’s current value of $0.63, this would mark a 1,487% increase in value. While this seems like an ambitious forecast, it is interesting to note that XRP rallied at a much greater rate the last time.
In 2016, XRP was trading at a high of $0.00947 before the final shakeout. However, after the shakeout, it surged to the all-time high of $3.31. This marked a massive 34,852% increase within a year and two months.
Confidence in a Downtrend
Cobb expects a similar pump this time. The influencer’s confidence is bolstered by the fact that XRP is the first asset to defeat the SEC in a legal battle, the first altcoin to get regulatory clarity, and the first crypto project to partner with leading banking institutions.
Despite these feats, Cobb expects XRP to be the last asset to pump. XRP’s potential remained subdued in the previous bull run due to the legal pressure from the SEC’s lawsuit. However, these projections should not serve as investment advice, as past successes do not guarantee future performance.