The price of XRP, the native token of the Ripple ecosystem, has been on the rise recently, sparking discussions of a potential rally within the crypto community. In the last 24 hours, XRP has seen a 7.5% increase, making it the top gainer among the top 100 cryptocurrencies. Currently trading at $0.643, XRP has reached a level not seen since early April.
With a market cap exceeding $36 billion and a daily trading volume of $2.9 billion, XRP has caught the attention of veteran crypto trader Tony Severino. Severino highlighted the XRP Bollinger Bands, suggesting a possible price rally and referring to it as a “mega breakout.” This term is reminiscent of 2018 when XRP experienced a significant price rally of 60,000%.
However, the likelihood of another 60,000% surge in XRP’s price is questionable. In January 2018, XRP’s market cap reached around $130 billion, representing a 600x growth in just one year. Given the current market cap of $36 billion and the volatile nature of the cryptocurrency market, achieving another 600x surge in the short term seems improbable.
Data from Santiment reveals that 87.32% of XRP’s supply is currently in profit, indicating that many investors may choose to take profits before a potential price correction. Whales, or large holders of XRP, have also been active during the recent price increase, with the number of whale transactions exceeding $100,000 worth of XRP rising significantly.
The XRP Relative Strength Index (RSI) is currently at 69, signaling that the asset is overbought at its current price level. This could lead to a price correction as investors engage in short-term profit-taking. Additionally, a forecast from crypto swap platform Changelly predicts that XRP’s price could surpass $500 by 2050, with a maximum price of $1.18 expected by 2025.
While the possibility of a significant price rally for XRP is generating excitement in the crypto community, it is essential to consider the factors that could influence the asset’s price in the short and long term. With market conditions remaining volatile and indicators pointing towards potential profit-taking, investors should approach XRP’s price movement with caution and conduct thorough research before making any investment decisions.