Touching $100 Billion Marketcap, Will $XRP Price Crash Again?

Bittime - XRP price, which is now recording fantastic figures, has broken through marketcap $100 billion (around Rp. 1,580 trillion) for the first time since 2018. Even so, the threat of the $XRP price crash still looms. Check out the complete analysis here!

This increase in the price of XRP is accompanied by growing optimism among investors. This is especially true after a series of positive news regarding the development of the Ripple project and the crypto sector as a whole. 

However, even though XRP is experiencing a significant price surge, the question that arises in the minds of many investors is, Will $XRP price crash again? 

This article will discuss the latest analysis regarding the price of XRP, the market conditions it is facing, and whether a potential short-term price decline is still possible.

XRP Touches $100 Billion Marketcap

In the last few days, XRP has managed to exceed the marketcap figure by more than $100 billion (around IDR 1.58 trillion). This makes it one of the largest crypto assets in the world. 

Referring to CoinGecko data, the price of XRP jumped around 20% in the last 24 hours, reached $1,93 (around Rp. 30,000). The coin also recorded a weekly gain of 24,9%. 

With a market capitalization that is now only behind Bitcoin, Ethereum, Tether, and Solana, XRP has cemented its position as the fifth largest crypto asset in the world.

This jump in XRP prices was largely fueled by positive sentiment pointing to a brighter future for Ripple and XRP. 

One of the main factors that played a role in this surge was the resignation of Gary Gensler, chairman SEC (Securities and Exchange Commission), which has been an obstacle for Ripple in legal processes involving XRP. 

This news has sparked a wave of optimism among investors, considering the potential resolution of legal issues that might support XRP's future.

Read also: DOGE and XRP Beat Bitcoin in Trading Volume in South Korea

XRP Price Analysis, Will It Crash Again?

Sumber: Cointelegraph

After experiencing an incredible price spike, many are wondering whether the price of XRP will fall again or whether this is just the start of a longer bullish trend. 

Some analysts warn that despite the significant increase in XRP prices, there is a high probability that the market is in a tailspin overbought or overbuying.

At the time of writing, the price of XRP has seen an increase of 220% since the beginning of this year, and although these are very encouraging figures, technical indicators point to the potential for a price correction in the near future. 

One of the indicators that attracts attention is Relative Strength Index (RSI) XRP which is currently in the figure 89, which means XRP is already in the overbought zone. Usually, an RSI above 70 indicates that the price may experience a decline, or correction in the near future.

Historically, XRP has often experienced price declines after reaching high RSI levels. For example, in June 2023, XRP's RSI penetrated 85, and after that the price of XRP fell 46,5% in less than two months. 

A similar correction also occurred in November 2023, when the price of XRP fell by more than 33% after the RSI reaches more than 70.

Read also: Solana (SOL) vs Ripple (XRP): Which is Good for Investment?

XRP Faces Overbought Trend, What Does It Mean?

Considering the price spike that has occurred, many are worried whether XRP will continue to remain at high price levels or will experience a sharp decline. 

Overbought is a condition where many investors buy XRP aggressively, pushing the price to levels that are unsustainable in the long term. In this situation, prices will usually experience a temporary correction or decline.

However, it is important to note that although a high RSI can indicate a potential price decline in the near future, A high RSI in a strong bullish trend can last quite a long time. 

Therefore, although a price correction is possible, this does not necessarily mean that the bullish trend for XRP is over. XRP could still continue its rise if fundamental supporting factors, such as the resolution of legal cases and recognition from more large institutions, continue to develop.

Read also: These 4 Cryptos Are Targeted by Whales in Q4: XRP, SOL, JBOLT, and KAS

Conclusion

The price of $XRP is indeed showing an extraordinary positive trend, with the market cap successfully breaking the $100 billion mark (around IDR 1.58 trillion) for the first time in more than five years. 

However, with technical indicators showing potential overbought, many analysts predict that $XRP price may undergo a correction soon. 

Still, fundamental factors such as the resolution of Ripple's legal issues with the SEC and wider adoption by large institutions could help push XRP prices higher in the long term.

For investors who are considering entering or adding to a position, it is important to manage risk with caution, given the high volatility in the crypto market. 

Price corrections are common in crypto market cycles, but XRP's long-term potential remains attractive if this bullish trend continues.

With market sentiment still optimistic and adoption becoming more widespread, the future XRP could be brighter, although the challenge of short-term price corrections remains to be watched out for.

FAQ About XRP

Can XRP reach $100?

XRP's market capitalization surpassed $100 billion on Friday, hitting its highest level since January 2018 and overtaking BNB to become the fifth-largest crypto asset by market value, according to CoinGecko data. The price of this token jumped 18% to $1.8 in the last 24 hours, with a weekly increase of 22%.

What will XRP be worth in 2025?

SPotential scenarios: Bullish Scenario: A favorable outcome in the SEC lawsuit combined with significant RippleNet adoption and positive market conditions could push XRP to prices ranging from $5 to $10 or even higher.

Can XRP reach $5?

Some experts believe XRP could reach $5 by the end of 2024, largely due to factors such as increased demand for Ripple's cross-border payment solutions, the ongoing resolution of regulatory issues, and the expanded use of XRP in many decentralized finance applications.

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Reference: 

Cointelegraph, article Cointelegraph, accessed November 30, 2024

Crypto Briefing, artikel Crypto Briefing, accessed November 30, 2024

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