In a post on the X platform, a crypto analyst suggested that the market value of Ripple (XRP) will soon reach $1.5 trillion. How reasonable is this prediction?
Last Wednesday, a crypto analyst shared a post on the X platform explaining an investment thesis that Ripple’s (XRP) market cap could rise to $1.56 trillion if its dominance continues to grow in the coming months. Technical analyst Egrag Crypto, who has around 70,000 followers on the X platform, suggested that Ripple could outperform Bitcoin (BTC) and Ethereum (ETH) in terms of gains at this stage of the bull market.
The analyst first explained that XRP’s dominance has continued to grow recently, rising from 1% to over 5% in the past four years. One of the main reasons for this increase is Ripple’s victory in its lawsuit against the US Securities and Exchange Commission (SEC); Egrag then suggested that XRP’s price could rise above the 0.5 Fibonacci retracement level – usually a bullish sign – which could cause its dominance to rise to 11.44%.
Given the current market cap of all cryptocurrencies - $3.28 trillion - Ripple's market cap could soon reach $375 billion if Egrag Crypto's predictions come true, potentially providing XRP holders with a 3x gain compared to its current market cap.
However, the prominent analyst also predicted that the market cap of all cryptocurrencies could rise to $5.42 trillion by the time the altcoin season kicks off, meaning that XRP’s dominance rising to 11.44% could push its total market cap to $620 billion, a 5x gain for its current investors.
Although past performance is no guarantee of future results, the continued upward trajectory of Ripple's dominance may indicate that these expectations are likely to be realized in the medium term.
Potential for XRP price to rise to $4 before the end of the year:
Technical analysis shows that Ripple price could rise to 4$XRP as the market recovers from the recent downtrend and late buyers enter the market, which could help support the bullish momentum.
Analysts point out that the rise in cryptocurrency prices after the US elections is the first wave of a long period of rising prices for all digital assets, with many favorable conditions such as Donald Trump’s victory in the presidential elections in November and the Federal Reserve’s intention to continue cutting interest rates, which makes it likely that the prices of high-risk assets, including cryptocurrencies, will rise.
XRP could be the most likely of the top 10 cryptocurrencies to see these potential gains, having surged 253% since the court ruled in favor of the company in its long-running lawsuit against the SEC. Given the strength of the XRP network, the hard work of the company’s senior staff, and the continued support of its large community despite many challenges, XRP could become a major pillar of the global payments, decentralized finance (DeFi), and smart contracts sectors.
The launch of Ripple’s stablecoin RLUSD is a step forward in boosting the project’s popularity. During the recent downturn, XRP found support at the important $1.95 level that is worth watching in the future; if the price stays above this level, it could surge significantly as the altcoin season begins. Therefore, a price rally to $4 in the near future seems possible, which could double Ripple’s market cap. However, Egrag Crypto’s bullish forecast suggests that the cryptocurrency’s status and influence in the sector could continue to grow in the long run.
