XRP Price Potential
XRP price has the potential to reach a two-digit figure if it recaptures the percentage of Bitcoin market cap it held in 2018 before the SEC lawsuit.
Amid a broader market pullback from the Federal Reserve’s hawkish stance on the economy, XRP has suffered a huge blow. The altcoin’s price collapsed from a top of $2.72 on Dec. 17 to a floor of $1.96 on Dec. 20, marking a massive 28% decline within four days.
XRP recovered from the $1.96 low as a result of robust support at this level, a region that previously acted as resistance. Despite the rebound, XRP price is still 25% down from the $2.72 peak, currently hovering around $2.16 at press time.
XRP Underperformance vs. Bitcoin
At this price, XRP’s market cap stands at $132 billion, according to data from TradingView. It is worth noting that XRP hit an all-time high market valuation of $165 billion on Dec. 3, when its price soared to the seven-year high of $2.9. Before now, the peak valuation stood at $128.5 billion in January 2018.
Despite this cycle’s valuation being greater than the 2017/2018 valuation, it captures a much lower percentage of Bitcoin’s market cap. For context, in January 2018, when XRP’s market cap hit $128.5 billion, Bitcoin had a valuation of $260.05 billion, indicating that XRP captured 49.4% of BTC’s market cap at that time.
This ratio declined considerably as XRP faced turbulence over the years while Bitcoin thrived. Furthermore, the SEC lawsuit, which began in December 2020, exacerbated XRP’s underperformance, resulting in the asset missing out on the 2020/2021 bull run.
As a result, the ratio of XRP’s market cap to Bitcoin’s valuation has plummeted. For instance, at the beginning of this year, on Jan. 1, XRP only held 3.9% of Bitcoin’s market cap, with XRP’s valuation at $33 billion and Bitcoin at $838 billion.
XRP’s Potential Reclamation
Following the November rally, XRP’s market cap skyrocketed to new heights. Now, with a market valuation of $132 billion, XRP captures approximately 6.8% of Bitcoin’s market cap, which currently sits at $1.93 trillion. This is still way below the 49.4% ratio from 2018.
Nonetheless, market experts believe XRP price will surge further as the ongoing correction ends. If XRP were to reclaim the 49.4% Bitcoin market cap ratio, the implications would be massive for its prices.
For context, 49.4% of Bitcoin’s current valuation is $953 billion. Should XRP reach a market cap of $953 billion, its price would skyrocket to $16.6, based on the circulating supply of 57.25 billion tokens.
Such a price would mark a 621% increase from the current XRP price. Interestingly, market expert EGRAG had previously projected this price target for XRP. In October, EGRAG leveraged a Linear Regression principle to set three XRP price targets, including $16.
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