Markets
Could XRP Reach a Market Cap of $3 Trillion? Here’s when it could happen
THE cryptocurrency the market in 2024 saw a surge in activity, with significant rebounds for large cryptocurrenciesBitcoin approvals (BTC) and Ethereum (ETH) exchange traded funds (ETF) and the BTC halving event in April.
Amid these developments, XRP has received considerable attention. Although it is largely absent from bull runXRP sparks optimism due to recent legal advancements between Ripple Labs and the United States Securities and Exchange Commission (SECOND).
EGRAG CRYPTO, a renowned analyst, recently Underlines a significant potential increase in the price of XRP based on two key patterns: “The White Channel” and the “White Triangle”.
#XRP Stock market cap at $3T!!! 🚀 – THE WHITE CANAL
Once #XRP MC comes out of “The White Channel”, we’re looking at a $3 trillion market cap! 🌙✨
The midpoint of the channel is $100 billion and the high end reaches $287 billion. It’s here that #XRP MC will propel itself like a rocket! 🚀💥… pic.twitter.com/QOXsyGDO2k
– CRYPTO EGRAG (@egragcrypto) May 28, 2024
The white channel pattern is observed on the monthly log chart, tracking the XRP market capitalization from March 2014. Anchored at its first high in December 2014, the channel includes a high in April 2021.
The analyst suggests that if XRP breaks the upper boundary of this channel, its market capitalization could reach almost $290 billion from its current level of around $28.7 billion.
Additionally, the white triangle 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 a breakout expected on the horizon .
The Likelihood of XRP Reaching a Market Cap of $3 Trillion
Despite these optimistic indicators, there is significant skepticism that XRP will reach a market cap of $3 trillion.
At press time, the price of XRP is $0.5167, with a circulating supply of 55.45 billion XRP, giving it a market capitalization of approximately $28.68 billion.
To reach a market cap of $3 trillion, the price of XRP would need to reach around $54.11, a nearly 104-fold increase from its current price.
For XRP to achieve this, it would need to not only outperform major cryptocurrencies like Ethereum and challenge Bitcoin’s dominance, but also maintain 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 significant competition.
XRP, currently the seventh largest cryptocurrency by market capitalization, is expected to outperform these established cryptocurrencies, which enjoy wider adoption, higher liquidity, and stronger market positions.
Furthermore, the resistance level of the White Canal appears to be arbitrarily established without substantial justification, casting doubt on the projection.
While the White Triangle model has been historically reliable, it does not account for broader market conditions or the significant challenges facing XRP.
Assuming that XRP can reach a market cap of $3 trillion without considering market dynamics, competition, and the overall environment is too optimistic.
XRP Price Analysis
7-day XRP price chart. Source: Finbold
At the time of writing, XRP is trading at $0.5167. Over the past 24 hours, XRP saw a decline of 0.75%, reflecting the bearish market sentiment.
XRP is facing increased scrutiny with the possibility of Ripple selling 400 million XRP in June, which would be the biggest dump in seven years, as reported by Finbold. This significant sell-off could impact XRP market dynamics and potentially slow down an expected bull rally this cycle.
Therefore, investors should carefully consider these factors, recognizing the speculative nature of these predictions and the formidable obstacles that XRP must overcome to achieve unprecedented growth.
Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.