- XRP has shown impressive fundamentals driving its gains, reclaiming the $1 target after three years.
- However, its future ascent to $2 will depend on how it navigates both internal and external factors.
As a seasoned researcher with years of observing and analyzing the crypto market under my belt, I can confidently say that XRP’s recent surge back to the $1 mark is nothing short of impressive. However, the road to $2 remains challenging, as the cryptocurrency landscape is filled with unexpected twists and turns.
Over the last seven days, Ripple [XRP] experienced an extremely positive trend, breaking through predictions and reaching the $1 mark once again – a significant level not seen since more than three years ago.
After months of consolidation, XRP has made an impressive comeback, proving its resilience.
But now comes the real test.
As a researcher, I’ve observed an extraordinary confluence of internal and external elements driving this remarkable surge. This rally not only propels XRP beyond the $1 mark but also elevates it to the sixth position in the cryptocurrency market, surpassing Dogecoin [DOGE]. Remarkably, the market capitalization of XRP has experienced a significant increase of over 10%, reaching an impressive $60.45 billion.
Is it likely that XRP will continue its upward trend towards the $2 price point, or are these gains too optimistic given the numerous factors at play?
Memecoins could be the unexpected roadblock
Generally speaking, when Bitcoin (BTC) stabilizes, it often presents an opportunity for other investments to flourish. This is because investors tend to adjust their portfolios during such periods, shifting funds and diversifying risks.
Just as past patterns have shown, the list of weekly winners is largely controlled by a mix of low and high-value investments. It’s intriguing to note that six out of the top ten entries are meme-inspired cryptocurrencies.
It appears that XRP’s significant 80% increase over the past week is noteworthy, but it has yet to dethrone the leading positions of the top 3 meme coins.
The top performer alone has posted a four-digit weekly gain, adding fuel to the narrative of a potential ‘supercycle’ in the making.
Essentially, meme-based cryptocurrencies like Dogecoin are becoming a notable obstacle for XRP’s growth surge. Lately, Dogecoin, the most prominent memecoin, managed to surpass XRP in terms of market value, thereby regaining its position among the top six largest cryptocurrencies by market cap.
Despite Ripple recovering its spot following a strong surge, the possibility that Dogecoin might overtake it once more introduces an element of doubt to XRP’s ongoing ascent.
Due to these ongoing changes, it seems plausible that Ripple might take some additional time before it can hit the $2 price point.
This goal could appear somewhat ambitious, considering that memecoins are currently experiencing a significant transformation from being highly volatile assets to dominating market trends during volatile periods – which suggests they’re maturing into legitimate players with practical applications.
Yet, this swift rise might be a sign of overexertion. If the fear of missing out (FOMO) doesn’t return promptly, less experienced investors could begin to sell their profits, which could cause XRP to trend downwards.
Bulls may have to flip $1 into support
Over the course of this month, I’ve observed a steady climb in the XRP reserve, peaking five days ago with approximately 3.273 billion tokens stored in exchanges. This represents a significant 5.41% increase compared to the initial 3.105 billion tokens held during the first week of the month.
It’s worth noting that while Bitcoin reached $90K and sparked a significant rise in other cryptocurrencies during its second week, XRP’s price didn’t budge. This is evident from the growth in XRP’s exchange reserves.
Source : CryptoQuant
Yet, as the leading altcoins experienced an overextension and investors started taking profits, there was a significant decrease in XRP’s exchange reserves, falling to approximately 3.228 billion.
It appears that, due to concerns about Bitcoin potentially moving into a higher-risk category, investors have cautiously reduced their investments in riskier assets as part of their strategy.
Five days ago, they identified the drop in XRP’s price as a good buying opportunity, and proceeded to add it to their portfolios since many alternative coins had already reached their peak.
It seems now that these investors are moving their focus from exchange reserves to other investment options, as they aim to profit from the recent increase in those asset values.
This implies that the $1 level might be a temporary occurrence, unless the bulls can transform it into robust support in the long run.
Read Ripple’s [XRP] Price Prediction 2024-25
To maintain momentum, flipping $1 into support will be crucial. If bulls succeed, monitoring whale activity will become essential, as it could signal a continued rally toward $1.15.
On the other hand, intense buying pressure, a high Relative Strength Index indicating market overheating, and the success of meme-based cryptocurrencies present considerable hurdles for this strategy. If this approach does not pan out, XRP may revert back to its original value level.
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2024-11-18 06:16