A prominent market analyst EGRAG Crypto has drawn an intriguing parallel between XRP's current price trajectory and Tesla's historical performance, suggesting XRP may face a steep decline before potentially experiencing massive gains.
The analyst points to similarities between recent events involving both companies. Just as Tesla's stock plummeted following CEO Elon Musk's "60 Minutes" appearance in December 2018, XRP's value dropped after Ripple CEO Brad Garlinghouse's recent interview on the same program discussing the SEC lawsuit and crypto regulations.
Following Garlinghouse's appearance, XRP's price fell 25% from $2.61 to $1.96, marking its first dip below $2 since early December. While the price has slightly recovered to $2.15, EGRAG warns that further bearish pressure could drive XRP down to approximately $1.30, representing a 50% decrease from its recent peak.
Drawing from Tesla's historical data, EGRAG notes how Tesla's stock fell from $25.16 to $11.80 during its challenging period but later skyrocketed to $414.50 by November 2021 - marking a remarkable 3,412% increase from its low point.
Based on this comparison, the analyst suggests that if XRP follows a similar pattern and drops to the predicted $1.30 level, it could potentially surge to $45.60 by November 2027, mirroring Tesla's percentage gains.
However, investors should note that XRP has already experienced a 21% decline over the past week, and market patterns between stocks and cryptocurrencies can vary substantially. While historical comparisons provide interesting perspectives, they don't guarantee future performance.