XRP must reach a price of $5,800 to equate its investment value with that of Bitcoin, according to analyst Samson Mow. This article examines the reasons why Ripple has not yet achieved this benchmark.
Samson Mow, a prominent Bitcoin advocate and cryptocurrency analyst, has asserted that for XRP to align with Bitcoin's value, it must be priced at $5,800.
His comments come at a time when Bitcoin continues to outperform many alternative cryptocurrencies, including XRP, which has faced challenges despite a recent legal victory against the SEC and strategic acquisitions.
In this piece, we analyze the feasibility of XRP reaching the $5,800 target and the reasons this goal appears difficult to attain.
Samson Mow Sets XRP Price Target at $5,800 – The Calculation Explained
In a recent post on X, Mow emphasized Bitcoin as the premier cryptocurrency investment, suggesting that altcoins like XRP do not justify their current market prices.
He calculated that XRP would need to reach $5,800 to reflect its true value, deriving this figure by dividing Ripple's existing market capitalization by Bitcoin's total supply of 21 million coins.
Many altcoins exploit unit bias by having an extremely high supply, which confuses potential buyers about the value of their purchases. For instance, individuals may perceive XRP as a bargain at $2, while viewing Bitcoin as prohibitively expensive at $85,000. This unit bias significantly misleads those who are not well-informed.
Mow also pointed out that purchasing Ripple at the current XRP value of $2 is akin to acquiring a small portion of Bitcoin.
Consequently, he believes that a trader interested in the cryptocurrency market would be better served by investing in BTC, which continues to lead among altcoins.
Why a $5,800 Target for Ripple Is Unrealistic
Mow's projection of an XRP target price of $5,800 is impractical, given the substantial supply of 58 billion Ripple tokens.
If Ripple were to reach $5,800 with this circulating supply, its market capitalization would skyrocket to $336 trillion, which is three times greater than the total GDP of the world. Therefore, this target price is neither realistic nor achievable.
For XRP to rise to $5,800 and provide an investment value comparable to Bitcoin, as per Mow's argument, it would need to reduce its supply through mechanisms like token burns.
However, Ripple currently has a system that adds 1 billion XRP tokens to the circulating supply each month. As the supply increases, the $5,800 target becomes increasingly unattainable.
Short-term Outlook for XRP Price
The XRP price is showing multiple bullish indicators on the daily chart, suggesting a potential upward breakout from its current consolidation phase.
The Bollinger Bands are tightening as Ripple approaches the middle band, indicating that buying pressure is accumulating, which could lead to a recovery.
Simultaneously, the AO histogram bars are green, even though they remain in the negative territory.
Traders should monitor for a crossover of these bars above the zero line to confirm the onset of bullish momentum, which would suggest that the Ripple price could continue to rise.
If buyers enter the market now, XRP will encounter the next resistance level at $2.23.
Should it successfully breach this resistance, it would set the stage for a breakout to $2.73, potentially leading Ripple to achieve new all-time highs.
Additionally, the recent increase in activity on the Ripple network supports a positive outlook for XRP's price.
In conclusion, analyst Mow asserts that XRP will match Bitcoin's value only if its price rises to $5,800.
However, this target is unrealistic, as it would result in a market capitalization of $339 trillion for Ripple.
Although this goal is not feasible, the daily price chart suggests that a rally for Ripple is on the horizon, as technical indicators reveal a decline in bearish momentum.
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