XRP makes a surprising run to $1, however, analysts believe that its journey to the next crucial resistance level at $2 could be challenged by the meme ecosystem. Market Analyst EGRAG CRYPTO believes that XRP could hit $27 in a conservative estimate.
XRP has broken a crucial resistance level at $1, proceeding to touch the $1.14 level in a 95% run on its weekly price chart. According to our market data, XRP’s 24-hour trading volume, however, remains 53% down with $64 billion changing hands at press time.
According to our analysts, this significant run was triggered by rumors that Ripple CEO Brad Garlinghouse has had a meeting with the US president-elect, Donald Trump. However, the question of whether XRP can continue this momentum has become a key topic within various investment forums.
XRP Faces Meme Coins
Analyzing a thesis shared by an analyst, we discovered that the meme ecosystem could be a huge standing block on the path to $2. According to data, the weekly gainers list has been dominated by meme coins. XRP, despite its impressive run, still fell behind the top three meme coins.
Looking at the daily chart, it can be observed that XRP has been consistently posting green candles for 10 days, indicating overextension. With this, a slight drawback could force inexperienced investors to find alternatives. Meanwhile, XRP reserves on exchanges have been consistently high since the beginning of the month. Data estimates that 3.273 billion tokens were held in exchanges five days ago, representing a 5.41% increase from the 3.105 billion recorded in the first week.
Investigating this further, we observed that the increase in exchange reserves coincided with the surge of Bitcoin to $90K. Within the period, the price of XRP barely made any appreciable move. However, the overextension of top altcoins saw the XRP in exchange reserves falling to 3.228 billion. According to analysts, the significant surge of Bitcoin forces investors to minimize their exposure to riskier assets as part of their strategic decisions.
Price Prediction
According to EGRAG CRYPTO, XRP could surge to 50x or even 96x if market conditions become favorable. A 50x implies XRP could hit $50, and 96x could position the asset at $96.
Analyzing his thesis, we observed that the analyst was comparing the current market behavior to the 2017 cycle. Historically, there were two crosses between the 20 SMA and the 50 SMA.
Based on the attached image, there could be an aggressive price surge if Cycle A plays out. However, the validation of Cycle B implies that this scenario has been overpassed. In a situation where the asset follows Cycle C, it implies that XRP could be “paving” a completely new path.
Per his observation, the current market behavior resembles Cycle A. This means the price could be around $27 in conservative terms.
I firmly believe that this cycle mirrors Cycle ‘A’ but amplified by a factor of 10X. For example, price levels in Cycle ‘A’ multiplied by 10 would equate to 0.07c in Cycle A becoming 0.70c in this cycle. So my target is still $27 which is 10X of ‘A’.
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