Macro Economist Ponders Whether XRP Psycho Pump Could Mark Cycle Top
Macroeconomist Seth explores the possibility that a potential XRP psycho pump could signal the peak of the current crypto market cycle, drawing parallels to historical trends.The crypto market experienced an exceptional price run this week, particularly with Bitcoin. However, altcoins like XRP largely lagged in the buoyant market, failing to show outstanding performance alongside Bitcoin. As XRP price action this week attracted attention from holders, market watchers assured that XRP would eventually have its own bull run. Meanwhile, Seth, a macroeconomist, recently highlighted an unusual characteristic of XRPs market behavior.XRP Parabolic Move Signs of Market TopIn a tweet, Seth shared the content of a conversation with a Bitcoin whale who suggested that XRPs performance could be a vital indicator of the crypto markets trajectory. According to Seths source, a parabolic rally in XRP traditionally signals the peak of a bull market.This post sparked speculation within the crypto community about whether XRP could experience a dramatic "psycho pump" in the final stages of the current market cycle.For context, the ongoing crypto bull run is already a year old, and analysts expect it to last for another year before a bear market surfaces. Seth's perspective suggests that while XRP has remained relatively stagnant during this bull market, it may continue to underperform for a while longer before it begins its much-anticipated uptrend. However, by that time, the bull market could be nearing its end.Seth's message resonated with some, who noted that XRP has historically shown strong price spikes toward the end of bullish periods. However, others dismissed this perspective, arguing that similar claims could be made for other altcoins.Notably, the case for XRP largely draws inspiration from the 2016/2017 Bitcoin post-halving bull season, during which XRP saw a dramatic push.XRPs Dramatic Push That Marked a Cycle TopAfter Bitcoin halved on July 9, 2016, BTCs price was around $600. By January 2017, it had surpassed $1,000. The rally strengthened throughout 2017, reaching a cycle peak of approximately $20,000 by December.In contrast, XRPs trajectory during this time was relatively flat, trading with two leading zeros until April 2017. XRP did cancel another zero the following month but struggled within that range for several months until December 2017. In a remarkable surge, XRP rose from $0.2522 on December 12, 2017, to an all-time high of $3.84 by January 4, 2018. Following this peak, the crypto market entered a bear market from which XRP has yet to fully recover.The Case for 2020/2021In the 2020/2021 cycle, XRPs uptrend did not mark the end of the overall bull market. Specifically, XRPs price peaked at $1.96 in April 2021, around the same time Bitcoin first hit $60K. While Bitcoin later dropped to $30K, it eventually resumed its upward trend, reaching a cycle peak of $68K in November 2021. However, XRP did not benefit from this resurgence, as its peak occurred back in April. Some suggest this was due to the SEC lawsuit, which began in December 2020.
Text source: The Crypto Basic
