Cryptocurrency analyst and digital content creator Block Bull has recently forecasted a massive increase in XRP’s value, potentially reaching $250 by the year 2025. This prediction is supported by an analysis of historical market trends, especially those related to Bitcoin halving events—critical periods in cryptocurrency markets when the reward for mining Bitcoin transactions is halved, thereby reducing the supply of new Bitcoins and historically triggering price increases across the market.
Block Bull’s analysis includes a detailed study of XRP’s price movements from its 2017 surge to its peak in 2021, emphasizing the role of Bitcoin’s halving events. Block Bull says each market cycle, approximately 77 weeks from a breakout point to its peak, has been identified as a significant period of price increase for XRP. Furthermore, the popular analyst believes the cycles show a predictable pattern where XRP’s value spikes following the reduced supply of Bitcoin and subsequent market dynamics.
One pivotal component of Block Bull’s methodology is the “green trendline,” a tool used in technical analysis to track the consistent upward trajectory of an asset. This trendline represents a running average of closing prices over time, adjusted to emphasize more recent price data, and indicates a strong bullish (upward) trend for XRP that is projected to continue past 2023.
XRP currently is the 7th most valuable cryptoasset with a market cap of around $27.2 billion. Despite a recent dip, according to the analyst, the overarching analysis suggests substantial future growth. This growth, they believe, is underpinned by indicators like the Exponential Moving Average (EMA) and the Relative Strength Index (RSI). The EMA helps highlight price trends by giving more weight to recent prices, making it a valuable indicator in the fast-moving crypto markets. Meanwhile, the RSI measures the magnitude and persistence of price movements; values typically above 70 indicate a potentially overbought market, whereas values below 30 suggest an oversold market.
Another vital metric in Block Bull’s analysis is the realized market capitalization of XRP, which stands at approximately $55.2 billion.
Source: X
In the context of cryptocurrencies, realized market capitalization is a metric that aims to provide a more accurate representation of a cryptocurrency’s market value by taking into account the price at which each unit last moved, instead of simply multiplying the current market price by the total supply.
Here’s how it works:
Realized market capitalization is calculated by summing the value of each coin or token at the price it was last transacted on the blockchain. This approach differs from the standard market capitalization, which calculates the total value based on the current price of a cryptocurrency multiplied by its circulating supply.
This metric is particularly useful because it:
Filters out lost or inactive coins: By only accounting for coins that have recently moved, it excludes lost, forgotten, or hoarded coins that may not be contributing to the current market dynamics.
Provides insights into the actual economic activity: It offers a view of the market that reflects the prices at which actual trades were made, giving a potentially more realistic view of the market’s valuation.
Realized market cap can often be significantly different from traditional market cap, especially for cryptocurrencies that have been around for a long time and have experienced significant price changes. It helps investors gauge the actual invested capital as opposed to speculative market value.
Despite XRP’s promising long-term outlook, its market dominance has declined, suggesting its share of the total cryptocurrency market is decreasing. This could reflect shifting investor interests or competitive dynamics within the crypto space.
At the time of writing (7:30 a.m. UTC on May 13), XRP is trading at around $0.4984, down 1% in the past 24-hour period (and down 19.62% in the year-to-date period).
Source: TradingView
Featured Image via Pixabay
