XRP’s Dominance Strengthens, Setting the Stage for a Potential Massive Breakout
Market analyst JD has predicted on a post shared on their official X account about XRP’s potential price explosion following a critical retest of its market dominance level at 1.03%. This prediction follows a surge in interest in XRP and renewed optimism in the cryptocurrency market.
The XRP dominance chart measures XRP’s market cap position in comparison to the overall market. When XRP’s price rises, its market cap also experiences a surge, leading to increased dominance. JD’s analysis points out that the last time XRP dominance tested the 1.03% level, it resulted in a remarkable 650x price increase. This historical data forms the basis of the current bullish outlook.
Read Also: LUNC on the Burn: Strategies for Accelerating Supply Reduction
The accompanying chart illustrates that XRP dominance peaked at around 18% in early 2018, followed by significant price spikes, including a jump to $0.39 (39x in 56 days) and a surge to $3.31 (17x in 28 days). However, it also highlights a notable crash, where XRP dominance dropped by 50% to 0.19% over 203 days due to a correction from the $3.31 all-time high in January 2018. XRP has since continued to lose its market cap dominance and is now the sixth-largest asset by valuation.
Recent activity shows XRP dominance retesting the crucial 1.03% level and bouncing off it. This retest is significant, as it mirrors the conditions that led to the previous 650x price surge. The 1.03% level has proven to be a critical support level having been tested multiple times.
While JD has chosen not to provide a price target for his analysis, a repetition of the 650x increase could lead to greater heights for XRP. This 650x rise from the current price of $0.6212 would lead to an ambitious $403.78.
The chart also features a long-term descending resistance line, starting from the peak in 2018 and touching several lower highs. Breaking through this resistance could signal a significant increase in XRP dominance.
He portrays XRP’s potential movements with upward arrows, indicating possible spikes in dominance. Breaking through the descending trend line could lead to substantial gains. Amid this bullish scenario, JD has confidently called the bottom. However, he failed to present any price projection.
Current data on XRP’s price movements further supports the optimistic outlook. XRP currently trades for $0.6212, reflecting a significant 24-hour increase of 7.21%, with a 42% increase over the past week. Technical indicators such as the Ichimoku Cloud and Fisher Transform also show bullish signals, indicating a potential bullish trend and strong price momentum in the short term.
Read Also: Cardano Reveals Exciting Project Catalyst Fund 12 Winners
Follow us on Twitter, Facebook, Telegram, and Google News
Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
