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XRP could ultimately overcome its underperformance woes if it replicated the rally engineered by Binance Coin (BNB) from 2020 to 2021.
The market has continued to give crypto assets opportunities to transcend their prevalent positions in a period investors call the bull run phase. Several assets have leveraged this phase to push above price levels that they are unlikely to revisit in their future.
XRP’s Underperformance in 2020
However, some have failed on certain occasions to capitalize on the market run during such periods. For instance, XRP, which capitalized on the bull run from 2017 to 2018 to record an impressive 60,000% upsurge, was unable to leverage the 2020/2021 bull phase.
Some argue that XRP’s disappointing performance was a product of the SEC lawsuit against Ripple, which began in December 2020, right before the market slipped into a bull run. The lawsuit impacted XRP’s price action negatively, as several U.S.-based exchanges delisted the token, leading to a large-scale capitulation event.
However, with XRP declared a non-security during the summary judgment decision last July, these exchanges have relisted the altcoin. Now, certain market analysts believe XRP would not miss out on the ongoing bull run despite warnings from a few market commentators.
What if XRP Replicated BNB’s 2020 Run?
It bears mentioning that multiple assets saw remarkable rallies during the 2020/2021 bull run. For instance, BNB started 2020 with a price of $13.7 and spiked to $27 in February of that year. However, when a correction ensued, the Binance-affiliated token collapsed to a low of $12.5 in March 2020.
This bearish turn was short-lived, as BNB eventually recovered. The recovery push resulted in a massive run, as the altcoin saw 11 bullish monthly candles out of the 13 over the next year. BNB Spiked from the $12.5 low in March 2020 to a peak of $638 in April 2021. This marked a remarkable 9,813% increase.
With XRP now rid of the legal pressure that inhibited its run in the 2020/2021 session, we recently assessed what price the XRPL native token could attain if it replicated the run engineered by BNB from March 2020 to April 2021.
Notably, XRP traded at a low of $0.5386 in March 2024. However, multiple market watchers expect this ongoing bull run to extend to the next year, a similar trend from previous bull markets. Should XRP capitalize on the second leg and replicate BNB’s 9,813% rally, its price could reach $53, a new all-time high.
At such a price, a $1,000 investment in XRP would yield $96,839. While this presents a massive opportunity for investors to ride on, the scenario is purely hypothetical and without guarantee. This is largely due to XRP’s supply, which would take a $53 price per token to a market cap of $5.3 trillion.