The cryptocurrency market in 2024 has seen a surge of activity, with significant rallies for major cryptocurrencies, approvals of Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs), and the BTC halving event in April.
Amid these developments, XRP has garnered substantial attention. Despite being largely absent from the bull run, XRP is generating optimism due to recent legal advancements between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
EGRAG CRYPTO, a noted analyst, recently highlighted a potential major price increase for XRP based on two key patterns: “The White Channel” and the “White Triangle.”
The White Channel pattern is observed on the monthly logarithmic chart, tracking XRP’s market cap from March 2014. Anchored at its first peak in December 2014, the channel includes a high in April 2021.
The analyst suggests that if XRP breaches the upper boundary of this channel, its market cap could surge to nearly $290 billion from its current level of around $28.7 billion.
Additionally, the White Triangle breakout pattern has historically been a reliable indicator of positive price movements, setting a short-term price target for XRP between $1.20 and $1.50, with an expected breakout on the horizon.
The likelihood of XRP reaching a $3 trillion market cap
Despite these optimistic indicators, there is significant skepticism about XRP reaching a $3 trillion market cap.
At the press time,XRP is priced at $0.5167, with a circulating supply of 55.45 billion XRP, giving it a market cap of approximately$28.68 billion.
To reach a $3 trillion market cap, XRP’s price would need to rise to about $54.11, representing a nearly 104-fold increase from its current price.
For XRP to achieve this, it would not only need to surpass major cryptocurrencies like Ethereum and challenge Bitcoin’s dominance but also sustain unprecedented growth and adoption.
Bitcoin, with a market cap of over $1.3 trillion, and Ethereum, with a market cap of over $450 billion, represent substantial competition.
XRP, currently the seventh-largest cryptocurrency by market cap, would need to outperform these established cryptocurrencies, which boast more extensive adoption, higher liquidity, and stronger market positions
Additionally, the White Channel’s resistance level appears arbitrarily drawn without substantial justification, casting doubt on the projection.
While the White Triangle pattern has been historically reliable, it does not account for broader market conditions and the significant challenges XRP faces.
Assuming XRP can reach a $3 trillion market cap without considering market dynamics, competition, and the overall environment is overly optimistic.
XRP price analysis
XRP 7-day price chart. Source : Finbold
As of this writing, XRP trades at $0.5167. In the past 24 hours, XRP has experienced a 0.75% decline, reflecting bearish market sentiment.
XRP faces additional scrutiny with the possibility of Ripple selling 400 million XRP in June, marking the largest dump in seven years, as reported by Finbold. This significant sale could impact XRP’s market dynamics and potentially slow down an expected bull rally this cycle.
Therefore, investors should consider these factors carefully, recognizing the speculative nature of such predictions and the formidable hurdles that XRP must overcome to achieve unprecedented growth.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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