XRP may now be on track to record its first yearly loss in the past three years, but a market expert believes this could be a bullish sign.
The crypto market has not fared well since the global valuation reached its peak of $4.27 trillion on Oct. 6. Since then, the crypto market cap has lost $1.33 trillion, now below the $3 trillion mark. This has impacted XRP’s price alongside other altcoins, with XRP now down over 38% since Oct. 6.
On the monthly timeframe, XRP has witnessed two consecutive losing candlesticks, and is on track to record a third one amid a 13.22% drop this month, December. With this performance, XRP has now collapsed 10% this year, now gearing up for its first yearly loss since the 2022 bear market.
However, market analyst Alex Cobb believes this may be an important bullish indication for XRP, especially considering its future outlook in 2026. Notably, Cobb pointed out today that XRP has not recorded two consecutive yearly losses since 2021. Nonetheless, the chart data shows that the record goes back to 2019.
Specifically, the last time XRP witnessed two consecutive red yearly candlesticks was when it dropped 82.49% in 2018 and then recorded a subsequent 44.75% decline in 2019. Within this period, XRP collapsed from a price of $1.97 in January 2018 to a low of $0.1925 by the end of 2019. Since then, it has not witnessed two consecutive yearly losses.
In fact, since the 2018 and 2019 declines, XRP has only seen one red yearly candlestick, which emerged when it dropped 59.13% during the 2022 bear market. This was largely due to the two black swan events involving Terra and FTX that year. Despite this, XRP recovered by an impressive 81.51% the next year, 2023.
With XRP now on track to record another yearly loss, Cobb believes the next year, 2026, could be similarly bullish for XRP, as the chances of a second red annual candlestick remain low. However, how much this anticipated rebound could push XRP remains unclear. But with a 237% increase in 2024, XRP has already displayed its capacity for explosive surges.
Interestingly, multiple market commentators hold similar sentiments to Cobb. For instance, earlier this month, Zach Rector presented three reasons XRP failed to hit bullish targets this year, including the late arrival of XRP ETFs, the late resolution of the SEC lawsuit, and the delay with the Clarity Act, which could pass next year.
However, Rector argued that the impact of these developments could emerge next year, 2026. This aligns with Cobb’s suggestion that 2026 could come with an explosive surge.
Essentially, XRP used 2025 to set up the groundwork for an explosive rally next year. Interestingly, XRP ETFs have already begun seeing massive success, recently surpassing $1 billion in net inflows. However, investors should recognize that, despite the bullish sentiments, there is no guarantee XRP will perform well next year and manage their expectations.
Read more on The Crypto Basic – Bitcoin, Cryptocurrency, DeFi Topics And News
