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XRP May Surge, But Probably Not By 60,000%
The Ripple ecosystem’s native token, XRP, has gained bullish momentum as the cryptocurrency community debates another price rally.
Ripple (Exchange rate risk) has risen 7.5% over the past 24 hours, becoming the top gainer among the top 100 cryptocurrencies. XRP is currently trading at $0.643 at the time of writing – this level was last seen in early April.
XRP 1-hour price chart, July 24-31 | Source: crypto.news
XRP’s market cap has surpassed $36 billion, with a daily trading volume of $2.9 billion.
Tony Severino, a veteran cryptocurrency trader and analyst, pointed out the XRP Bollinger Bands that suggested a potential price rally, even calling it a “mega breakout” for XRP, as crypto.news reported yesterday. The bands reached a level last seen in 2018, when the XRP price increased by 60,000%.
Since then, the cryptocurrency community has started discussing the so-called “mega breakout” of XRP.
However, a further 60,000% increase in XRP price does not seem very realistic at this point. First, XRP market cap reached around $130 billion in January 2018, marking a 600-fold growth in a year. At that time, the asset became the second largest cryptocurrency after surpassing Ethereum (ETH) Market cap of $110 billion.
With the current market cap growing at $36 billion, a further 600-fold increase in XRP’s market cap in the short term seems rather unrealistic, given that the broader cryptocurrency market is moving in highly volatile conditions.
According to data from Santiment, the supply of XRP in profit has reached 87.32%, a level last seen in late March, when the token was trading at around $0.635. This could increase the number of investors taking profits before the asset’s price corrects.
XRP Price, Whale Activity, RSI and Percent of Supply in Profit in July | Source: Holiness
Data from the market intelligence platform shows that whales have also started to move during the XRP price surge. According to Santiment, the number of whale transactions involving at least $100,000 worth of XRP has risen from 526 to 811 unique transactions in the last 24 hours alone.
Additionally, the XRP relative strength index is at the 69 level, according to Santiment data. This indicator shows that the asset is currently overbought at this price, which means that a price correction due to short-term profit-taking is expected.
According to a report by crypto.news, a recent price prediction from cryptocurrency exchange platform Changelly expected that the XRP price could potentially surpass the $500 milestone by 2050. By 2025, the asset’s price is expected to peak at $1.18, according to the analysis.