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Why is XRP price expected to triple by 2021?

XRP has been facing some weaknesses throughout the past few days and weeks as buyers failed to push it above the key zone of $ 0.3. Despite this short-term weakness, analysts believe that the XRP price remains full of potential in the medium term.

XRP price is flashing strong signals on-chain despite the ongoing downtrend

XRP is currently facing some intense selling pressure occurring due to Bitcoin’s overnight slump. At the time of writing, XRP is trading around $ 0.276, down almost 4% over the past 24 hours. This marks a noticeable drop from a more-day high at $ 0.29 – a level that was established just days before the bulls attempted to retest the resistance at $ 0.3.

As mentioned in recent posts, XRP has a reasonably high correlation with Bitcoin as well as Ethereum. This means that XRP is likely to see a significant decline in price if it fails to scale its mid-term uptrend.

Currently, XRP is trading at the lowest price it has seen since the end of last week. On its previous decline, it might establish the lower zone of $ 0.27 as strong support.

Despite the current weakness, on-chain data shows that XRP can be underpinned by fundamental strength.

According to analytics platform Santiment, the number of daily active addresses of XRP remains high:

“In spite of XRP’s -9.2% retrace this past week, the active address output we’re seeing for the #3 market cap crypto asset has remained high. Ripple holders can take solace in it being one of the few alts with a DAA bullish divergences we’ve identified.”

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This is why analyst Pentoshi expected XRP to draw a perfect parabolic curve. To justify this point, he points to Bitcoin’s breakout above the 200-day moving averages on both the BTC and USD trading pairs. He also mentioned the possibility that XRP regains key support that has turned into resistance.

Pentoshi shared:

“Reclaimed 200D MA on both $BTC/USDT pairs. Reclaiming major S/R. You have to be blind to see that bears lost momentum and the pendulum is about to swing the other way. This is optimal entry to me. Not a 10x, but 2-3x eoy.”

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Whether this ability comes to fruition will depend almost entirely on Bitcoin’s trend in the coming months.

You can see the XRP price here.

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