Cryptocurrency enthusiasts are buzzing after EGRAG CRYPTO, a prominent analyst, predicted XRP’s market cap could skyrocket to a staggering $3 trillion. This would propel XRP into the top tier of digital assets, potentially altering the entire crypto landscape. However, a closer look reveals some reasons for caution.
Currently, XRP’s market cap sits at a modest $29 billion, dwarfed by Bitcoin’s $1.35 trillion dominance. EGRAG CRYPTO bases their prediction on a technical analysis pattern called “The White Channel” on the XRP chart. This channel suggests a potential price surge if XRP breaks its upper limit. Even reaching the channel’s peak could propel XRP’s market cap to nearly $290 billion, a significant jump, but far from the $3 trillion prediction.
Further bolstering their bullish outlook, EGRAG CRYPTO identifies a “White Triangle” pattern, historically associated with positive price movements. This pattern forecasts a short-term price target between $1.20 and $1.50.
Despite the optimism, reaching a $3 trillion market cap raises substantial questions. XRP would need to surpass established giants like Ethereum and even challenge Bitcoin’s supremacy, a feat many consider highly improbable.
A closer examination of the “White Channel” reveals potential flaws. The analysis utilizes a monthly logarithmic chart, focusing on XRP’s market cap since March 2014. The channel itself appears arbitrarily drawn, lacking a clear justification for its resistance level. Additionally, the target projection seems questionable. The analysis uses the channel’s width to estimate the target, but this measurement offers minimal justification.
Recreating the chart exposes these issues. The channel seems wide enough to encompass a previous high from 2021, and the target projection hinges entirely on the channel’s arbitrary width.
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Our verdict? While XRP forming a symmetrical triangle suggests a potential bull phase approaching its apex, the $3 trillion prediction is unsubstantiated. The analysis relies on arbitrary technical indicators and questionable measurements. XRP’s future remains uncertain, and any significant price movement will depend on confirmed breakouts and sustained momentum. Until then, the $3 trillion market cap seems like a bridge too far.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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