Markets
Could XRP Reach a $3 Trillion Market Cap? Here’s when it could happen
THE cryptocurrency The market in 2024 has seen a surge in activity, with significant rallies for the majors cryptocurrenciesBitcoin approvals (Bitcoin) and Ethereum (ETH) exchange-traded funds (ETF) and the BTC halving event in April.
Amid these developments, XRP has garnered considerable attention. Despite being largely absent from the running of the bullXRP is generating optimism thanks to recent legal progress among Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
EGRAG CRYPTO, a well-known analyst, recently highlighted a potential major price increase for XRP based on two key patterns: “The White Channel” and “White Triangle”.
#XRP Market cap at 3 trillion dollars!!! 🚀 – THE WHITE CHANNEL
Once #XRP MC exits “The White Channel”, we are looking at a moon shot for a $3T market cap! 🌙✨
The midpoint of the channel is $100 billion and the high end reaches $287 billion. This is where #XRP MC will move like a rocket! 🚀💥… pic.twitter.com/QOXsyGDO2k
— EGRAG CRYPTO (@egragcrypto) May 28, 2024
The White Channel pattern is observed on the monthly logarithmic chart, which tracks XRP’s market capitalization since March 2014. Anchored by its first peak in December 2014, the channel includes a high in April 2021.
The analyst suggests that if XRP breaks above the upper limit of this channel, its market capitalization could rise to almost $290 billion from the current level of around $28.7 billion.
Furthermore, the White Triangle breakout pattern has historically been a reliable indicator of positive price movements, setting a short-term price target for XRP between $1.20 and $1.50, with a breakout expected on the horizon.
The probability of XRP reaching a market capitalization of $3 trillion
Despite these optimistic indicators, there is considerable skepticism that XRP will reach a $3 trillion market capitalization.
As of this writing, XRP is priced at $0.5167, with a circulating supply of 55.45 billion XRP, giving it a market capitalization of approximately $28.68 billion.
To reach a market capitalization of $3 trillion, the price of XRP would need to rise to around $54.11, which is a nearly 104x increase from the current price.
For XRP to achieve this goal, it would not only have to surpass major cryptocurrencies like Ethereum and challenge Bitcoin’s dominance, but also sustain unprecedented growth and adoption.
Bitcoin, with a market capitalization of more than $1.3 trillion, and Ethereum, with a market capitalization of more than $450 billion, represent substantial competition.
XRP, currently the seventh largest cryptocurrency by market cap, is expected to outperform these established cryptocurrencies, which boast broader adoption, greater liquidity and stronger market positions
Furthermore, the White Channel resistance level appears arbitrarily set without substantial justification, casting doubt on the projection.
While the White Triangle model is historically reliable, it does not take into account the broader market conditions and significant challenges facing XRP.
Assuming that XRP can reach a market cap of $3 trillion without considering market dynamics, competition, and the overall environment is overly optimistic.
XRP Price Analysis
7-day XRP price chart. Source: Finbold
As of this writing, XRP is trading at $0.5167. Over the past 24 hours, XRP has seen a decline of 0.75%, reflecting bearish market sentiment.
XRP faces further scrutiny with the possibility of Ripple selling 400 million XRP in June, marking the largest dumping in seven years, as reported by Finbold. This significant selling could impact XRP market dynamics and potentially slow an expected bullish rally this cycle.
Therefore, investors should carefully consider these factors, recognizing the speculative nature of such predictions and the formidable obstacles that XRP must overcome to achieve unprecedented growth.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.