Analyst Predicts $3 Trillion Market Cap For XRP — How Likely Is It?
XRP could hit $3 trillion market cap
Key Takeaways
- EGRAG CRYPTO predicts XRP could reach a $3 trillion market cap.
- Prediction based on “The White Channel” pattern analysis.
- The analysis is unsubstantiated according to our verdict.
A recent analysis from EGRAG CRYPTO has sparked significant interest within the cryptocurrency community. It proposes that XRP‘s market cap could soar to $3 trillion, positioning XRP among the top digital assets and potentially reshaping the crypto market landscape.
XRP’s current market cap is $29 billion, while Bitcoin has the highest market capitalization of $1,35 trillion. Per its current valuation, XRP’s market cap would increase by a whopping 10,244%, around $52.
Where does he derive this projection from, and how likely is it?
XRP To $3 Trillion Market Cap Target
EGRAG CRYPTO’s prediction hinges on analyzing a pattern dubbed “The White Channel” on the XRP chart. This channel indicates a possible major price increase if XRP breaches its upper boundary. Even hitting the top of this channel could elevate XRP’s market cap to nearly $290 billion, up from its current level.
Adding to the bullish sentiment, EGRAG CRYPTO points out a White Triangle” breakout pattern on the charts, historically a reliable predictor of positive price movements. This pattern forecasts a short-term price target ranging between $1.20 and $1.50, with an expected breakout happening soon.
Despite the optimistic outlook provided by these technical indicators, there is considerable skepticism about XRP reaching a $3 trillion market cap soon, given the need to surpass major cryptocurrencies like Ethereum and challenge Bitcoin’s dominance. Such skepticism tempers the enthusiasm, reminding investors of the formidable hurdles XRP faces in achieving such unprecedented growth.
Recreating His Chart
Recreating his chart, there are a few things worth noting. First, the chart in question is the monthly logarithmic chart, showing XRP’s market cap from March 14. Second, its “white channel” is a parallel plane channel anchored at its first peak in December 2014.
It is an arbitrarily drawn channel with no substantial reason behind its resistance level other than being a parallel line to valid ascending support. It is wide enough to encompass a high in April 2021, and there is no reason to believe a breakout can occur besides the fact that, drawn in this way, XRP’s market cap went above it at its all-time high in January 2018.
The third thing is the target in question. Although it wasn’t specified, we’ve uncovered that the blue vertical line used to project the target is actually the channel’s width. With no clear reason why this channel is this wide and, for example, not wide enough to encompass its all-time high, the target projection using this length is invalid.
Conclusion
Based on the analysis provided and our recreation of it, our verdict is that this is highly unlikely. The author used arbitrary drawing methods and length to project the target. There is a potential for XRP to commence a new sustained bull phase as it formed a symmetrical triangle from the all-time high and now approached its apex.
However, before discussing the targets, we need to see this breakout direction and receive further confirmation of the strength behind the momentum. Anything else is just pure speculation with substance.
