Crypto YouTuber and analyst SOMMI believes XRP and the broader altcoin market could repeat a cycle of surges and declines similar to the pattern during the 2021 bull run.
SOMMI disclosed this in a post on X today, calling attention to an XRP market cap chart on the daily timeframe. The chart showed that despite a struggle to hit new heights during the 2021 rally, XRP failed to reclaim the 2018 high, facing a 70% retracement.
SOMMI predicts a similar situation in the foreseeable future. According to his analysis, XRP could experience a rapid surge in value, followed by a significant decline later, without regaining its previous high in subsequent rallies.
The analyst’s forecast hinges on historical data. Notably, in 2018, XRP exhibited a notable price surge, reaching an all-time high. However, this bullish run was eventually followed by a significant drop in value.
In 2021, XRP again entered a strong rally, aiming to recover its 2018 high. However, despite the notable 2021 surge, XRP couldn’t reclaim the previous peak, with its price remaining substantially lower than in 2018.
Anticipated Repetition
SOMMI’s analysis suggests that this historical pattern might repeat. XRP could witness another rapid price increase, possibly soon. However, a significant drop might follow this surge, and the asset might struggle to regain its previous high.
Importantly, this prediction is not confined to XRP alone – it also involves other altcoins in the crypto market. He asserted that, in the event of a bull run, most altcoins will hit targets 40% less than the peaks they reached during the previous market rally.
SOMMI’s perspective implies that altcoins could follow a similar pattern of surges and declines, making it challenging to recover their past highs in subsequent rallies.
The market watcher suggested that this pattern could occur in 2024 because the market is trying to predict and take advantage of price movements expected in 2025. However, there’s also a possibility that this drop might not happen until 2025.
Meanwhile, in the short term, XRP remains below the $0.50 price territory but hedges against further declines. The asset is changing hands at $0.4824 at the time of reporting, down 1.65% over the last 24 hours. An intraday fall today would mark XRP’s third consecutive day of losses.