We meet again this week for a new analysis and this time: you chose Ripple’s XRP, the crypto that usually announces the end of the bear market and the beginning of the bull market! Where are we now? Let’s see it together, enjoy the reading.
Warning : This article does not constitute investment advice or an investment inducement. It is intended only as an article strictly informative. You are the only one responsible for the trading and investment decisions you make.
XRP, QUESACO ?
XRP is a cryptocurrency created by the company Ripple Labs in 2012. Ripple is a financial technology company that provides international payment solutions for financial heavyweights. The technology allows, like most cryptocurrencies, for fast and cheap transactions. This is very interesting for big wallets that are getting lit up by banks.
Unlike Bitcoin, XRP does not use the blockchain to confirm transactions, but a technology called a “distributed ledger”. The XRP ledger is a shared digital ledger that contains all transactions made with XRP. This technology allows for real-time transactions and immediate confirmation of transactions.
However, the downside remains decentralization. XRP is clearly controlled by the entity that created it, Ripple, so it can be considered centralized!
Let’s move on to tokenomics, as of April 12, 2023, according to CoinMarketCap :
- Number of Tokens in circulation : 51 688 470 797
- Maximum number of tokens expected: 100 000 000 000
- % in circulation: 52 %
A limited supply with about half released over 5 years and 5-6% annual inflation on it, this seems correct for the future to avoid an impact of too much dilution on the price.
Where are we now?
A bearmarket hurts all altcoins. However, for XRP, even if it hurt, it was surgical with a support (in green) that did its job.
Indeed, this support is simply the beginning of the previous rally. And unlike some altcoins that stopped on more or less technically reliable zones, XRP, on the other hand, has put its low on its previous start. An area that seems to be perfectly bought as we see multiple W’s forming, especially on the other side of the bearish trendline.
Bis repetita for the maximalist XRP?
The other thing to note about this token is that it is a precursor to bullrun and heralds the end of the bearmarket (just like the LINK). Why is this? Simply because it is one of the most well-known tokens of the institutions and is therefore often bought quickly by them. And what do we see here?
That it’s super clean !
Just like in 2020, the XRP made a W before breaking its trendline, broke the trendline, made another W on the other side on its support. The last step it is missing is breaking resistance with some volume.
So will it happen right away or will we still have a pullback to support before we do? The timing is complex and it would be really early to make that breakout in relation to the Bitcoin cycle.
Anyway, what interests the investor in you is what price for XRP at the next bullrun? The usual, you have to look at the marketcap!
Currently, it is $26 Billion placing it among the top 10 cryptocurrencies in this bearmarket. It usually stays in this top during bullruns. If we estimate that Bitcoin should make a x5-7 coefficient and ETH should follow it with maximum a x10. Then it would not be crazy to see a similar coefficient for XRP. Projecting it to the $4-5 level, i.e. higher than its 2017 ATH.
All these numbers make you dream, but I think they will come true if and only if we still have a bullrun and Ripple finally wins its case against the SEC, which I remind you is suing them for illegally selling financial securities. So true or not? It looks like Ripple is on the right path to winning this lawsuit.
Alongside our $4-$5 conclusion, we shouldn’t forget that a bearish trendline has formed with the previous two highs. This would potentially make a nice rejection at the token dollar level. XRP, then, is a not-so-decentralized cryptocurrency, but used by big money. So between potential capital gain, but moving away from the very principle of decentralization, what will be your choice?
Entrepreneur & Dad, passionate about cryptocurrencies, I describe for you the technical analysis. Cofounder of Cryptocademia, a free platform to learn all you want/can about blockchain ! Meet you there at https://www.cryptocademia.com
My job: look at charts and interpret them for you.
Beware, I do not know all the truths.