XRP: Massive Surge Ahead or Looming Correction?

Summary

• One analyst suggests XRP may overtake ETH, driven by potential factors such as a favorable Ripple vs. SEC ruling and ETF approval.
• On the other hand, some analysts predict a potential 12% decline.

XRP Overtaking ETH?

Ripple’s XRP is one of the rare top cryptocurrencies currently showing a year-to-date (YTD) price decline. As of now, it is valued at approximately $0.52, reflecting a 15% drop from its price on January 1.

Despite this, a number of optimistic analysts are predicting that XRP is poised to align with market trends and achieve significant gains. One such analyst is Ben Armstrong, who is widely recognized on X as BitBoy.

Recently, he forecasted that the market cap of Ripple’s native token might exceed that of Ethereum (ETH). His bold prediction hinges on the notion that XRP faces no viable competitors. Conversely, BitBoy noted that Ethereum is facing increasing competition, citing rivals like Solana (SOL), Avalanche (AVAX), Cardano (ADA), and Polkadot (DOT).

The analyst believes ETH could still see substantial recovery in the upcoming year, although he does not anticipate its market cap to surpass $1 trillion (the current market cap is just above $300 billion).

Shifting focus to XRP, he envisions a price surge potentially reaching $22. Such an uptrend would elevate the asset’s market capitalization to an astounding $1.17 trillion.

“A 20x to 30x increase for XRP from its current level is not far-fetched. It’s truly capable of even more. In my opinion, it could very well become the leading coin throughout the entire bull market,” stated BitBoy.

It’s important to highlight that any significant movement in XRP’s price would be contingent on a combination of factors. The analyst mentions that these factors include a potential Trump win in the upcoming US presidential elections (which could lead to SEC Chairman Gary Gensler being dismissed), a conclusive outcome in the Ripple vs. SEC litigation, approval of an XRP ETF in the United States, among others.

Another user on X predicting the asset’s ascent to unprecedented highs is Dark Defender. Earlier this week, the strategist asserted XRP could soar to $18.22 if it breaks through the $0.66 resistance level, with the other critical condition being to remain above $0.3917.

Is a Further Pullback Possible?

However, not every analyst is convinced that XRP is on an upward trajectory. X user Cryptoinsightuk recently argued that a correction down to $0.46 appears “increasingly probable.”

The ongoing legal battle between Ripple and the US SEC could also serve as a damping factor for the asset’s valuation in the coming months. Remember, the regulator recently challenged a 2023 ruling made by Judge Torres, which concluded that Ripple’s XRP sales to retail investors on cryptocurrency exchanges were not in violation of securities laws.

This appeal has delayed a final resolution of the case, adding a new layer of uncertainty and initiating a new phase filled with legal filings and a briefing schedule.