Market analyst EGRAG Crypto suggests that XRP, the cryptocurrency associated with Ripple, could experience a significant drop in price before embarking on a meteoric rise, following a pattern similar to that of Tesla’s (TSLA) performance in recent years. According to EGRAG, XRP may face a bearish 50% slump before triggering a massive rally that could see its price soar by as much as 3,500%.

Tesla’s Historic Price Action

To explain his prediction, EGRAG drew a parallel with Tesla’s historical price action, particularly focusing on its journey in 2018. Tesla, led by CEO Elon Musk, faced immense challenges in 2018, particularly related to the production and deployment of the Model 3. During this tumultuous period, the company’s stock price saw a sharp decline, falling from a peak of $25.16 in December 2018 to a low of $11.8 by June 2019, representing a nearly 53% drop.

However, Tesla’s fortunes turned around dramatically in the following months. The stock began to climb, eventually reaching $25 by December 2019, just six months after its bottom. This marked the beginning of a massive bullish run that saw TSLA hit a staggering $414.50 by November 2021, representing an increase of more than 3,400% from its June 2019 low.

XRP’s Expected Path

EGRAG believes XRP is on a similar trajectory, suggesting that the cryptocurrency could undergo a 50% price drop before experiencing an explosive rally. This theory gained some momentum when XRP dropped from $2.61 on December 8, 2024, to a low of $1.96 the following day, marking a 25% decrease. Although XRP has since recovered slightly, trading around $2.15, EGRAG predicts that the price may still continue to fall toward the $1.30 mark, representing a 50% dip from the $2.61 level.

Should XRP indeed fall to this anticipated $1.30 floor, EGRAG suggests that the cryptocurrency could then see a massive rebound, similar to Tesla’s surge following its downturn. If XRP were to experience a similar 3,412% increase from the predicted low, its price could surge to $45.60 by November 2027.

Parallels Between XRP and Tesla

The analyst’s prediction draws an intriguing parallel between the two assets. Both Tesla and XRP have experienced significant periods of volatility, marked by sharp declines followed by strong recoveries. EGRAG contends that if Tesla can achieve such impressive returns, it is entirely possible for XRP to do the same, despite the differences between the two assets. While Tesla is a company, and XRP is a cryptocurrency, both share similar patterns in their market behavior, according to EGRAG.

Despite the potential for a bullish rally, EGRAG also acknowledges the challenges XRP faces. The recent 21% drop in its value over the past week highlights the current bearish market sentiment surrounding the cryptocurrency. The upcoming regulatory developments, particularly in the ongoing legal battle between Ripple and the SEC, will play a significant role in determining the future trajectory of XRP.

Conclusion

While the 50% drop that EGRAG predicts might seem alarming, it is positioned as a necessary precursor to a potentially monumental rally. If XRP follows Tesla’s historic path, this downturn could be the foundation for one of the most significant upturns in cryptocurrency history. However, as with any investment, the future remains uncertain, and XRP’s long-term success depends on several factors, including regulatory clarity, market sentiment, and broader adoption of blockchain technology.