According to CoinTelegraph analyst, Ripple (XRP) will drop but they don’t consider all variables.
There are similar opinions on other investment sites, here is what CoinTelegraph wrote:
In order to understand whether the traders should expect a further rally or a correction, we have gone back to the start of the year using a log scale.
Ripple has a history of sharp rallies, which are followed by a period of correction/consolidation.
The first up move from March 2 to April 2 of this year saw about 1,100 percent rise. The second rally from April 25 to May 17 resulted in 1,183 percent gain. The most recent rally from Dec. 11 to Jan. 4 led to 1,390 percent growth.
We find that the duration of the up move and the quantum of the rally is almost similar in all the three instances. So there might be a chance the XRP/USD pair has just formed a short-term top.
Both the previous corrections found support at about 61.8 percent Fibonacci retracement of the rally. If history repeats itself, we are likely to see a fall to $1.40 levels.
However, this is not an exact science and the above-mentioned projections will be invalidated if Ripple breaks out and sustains above $3.317.
If we see the graph, CoinTelegraph is correct, but the problem of CoinTelegraph and many other analysts is that they analyze all cryptocurrencies in the same way.
Our analyst in New York sent a note related to the CoinTelegraph’s prediction
As I said many times, Ripple is different from other cryptocurrencies for the fact that behind “XRP” there is a strong structure. Let me tell you that Ripple has former investment bankers, former managers and investors from Silicon Valley and they started to work on this product, not yesterday, but years ago. Many news are not public, but many institutions, financial companies already started to use Ripple. It means that we have to see the graph in a med-long term and it looks positive to me. If you see just “the day”, you won’t understand the potential of Ripple. Anyway, positive news next week could push XRP again, eg. deals between banks/financial institutions and Ripple , coverage on mainstream media, and positive messages pushed from a respected company leadership. If you see past trends you don’t see all variables. Many things are changing and Ripple is a really serious things
