A prominent market analyst believes XRP is following the same path as Tesla before its parabolic surge, suggesting a massive dump before an explosive rally.

This sentiment is held by notable market commentator EGRAG Crypto, who identified recent events that could determine XRP’s next price direction. According to him, XRP might face a bearish 50% price slump, which could precede a more substantial 3,500% rally.

Tesla Historical Price Action

EGRAG confirmed that this price action would trace the path that electric vehicle company Tesla (TSLA) followed back in 2018. 

For context, Tesla Chief Elon Musk’s most recent 60 Minutes appearance occurred in December 2018, where he discussed how “excruciating” 2018 was and the challenges the company faced while deploying Tesla Model 3. 

Interestingly, a few days after the interview, the TSLA stock slumped from a peak of $25.16 on Dec. 13, 2018. Despite mild, occasional recoveries, the bearish push persisted for six months, with prices hitting a floor of $11.8 in June 2019.

Remarkably, Tesla recovered. The rebound push allowed TSLA to reclaim the peak of $25 by December 2019, exactly six months after the bottom. The asset rallied further to $414.50 by November 2021. This marked an impressive 3,412% increase from the $11.8 floor within two and a half years.

XRP Following a Similar Trajectory 

In his latest commentary, EGRAG said XRP would follow a similar price trajectory. Recall that Ripple CEO Brad Garlinghouse also appeared on 60 Minutes on Dec. 8 to discuss the SEC lawsuit, crypto’s role in the latest U.S. election and the regulatory atmosphere.

In an interesting twist, XRP has collapsed following the interview. The asset slumped from $2.61 on Dec. 8 to a bottom of $1.96 the next day, representing a 25% drop. This marked the first time XRP dumped below the $2 mark since reclaiming it on Dec. 2.

XRP has since recovered from the $1.96 low, currently trading for $2.15, an 18% drop from the $2.61 price. However, EGRAG believes the bearish price action might continue, as he expects XRP’s drop to reach the 50% mark, just like TSLA in 2018/2019.

For context, a 50% collapse from the $2.61 price would translate to an XRP value of approximately $1.3. If this occurs, XRP will have relinquished the $2 mark, but maintained the $1 territory.

Nonetheless, EGRAG suggested that this dump would precede a more explosive upsurge similar to Tesla’s rally. Should XRP witness a comparative 3,412% increase from the anticipated $1.3 floor, its price will explode to $45.6. If the timeline repeats, this peak will materialize in November 2027.

“If Tesla did it, why not XRP?” EGRAG questioned, as he insisted that both assets aligned. However, he noted that despite the seeming correlation in their algorithms, they are 10x apart. XRP is down 21% over the past week.