Ripple’s XRP holders have had some challenging journeys following the 2018 bull run. However, the price of XRP has started to show some strength, rising steadily and breaking multi-year resistances. But is it okay to buy now?
Crypto analyst Lark Davis on YouTube suggested that despite past struggles and the spikes the price is now having, it may not be too late to buy the XRP coin.
He noted that while the price might not have skyrocketed, projections of reaching $6 or $7 are plausible, contrasting sharply with the outlandish figures some have suggested, like $589.
XRP Price Resilience Despite Hard Times
The analyst reflected on the historical price action of XRP, describing it as a period marked by unjustified pain for its holders. He shared a personal connection, mentioning that XRP was his first altcoin purchase, though he admitted to having some reservations about the asset for various reasons.
Despite his mixed feelings, he recognizes XRP’s significance in the crypto space, having consistently ranked among the top ten cryptocurrencies since its inception.
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He noted that in 2021, he cautioned against buying XRP due to the ongoing SEC lawsuit—an issue he considers frivolous. He commended Ripple for its determination to challenge the SEC, asserting that XRP should not be classified as a security, regardless of individual opinions about the coin itself.
The analyst addresses the current regulatory environment under Gary Gensler’s SEC, describing it as unpredictable. He expresses optimism that a new SEC leadership could alleviate the burdens of lawsuits on cryptocurrency companies, including Ripple. Additionally, he highlights Ripple’s ongoing partnerships with major banks and government initiatives, particularly in developing central bank digital currencies.
Market Outlook and XRP Price Prediction
XRP has recently surged by 136% in just two weeks, adding $40 billion to its market capitalization. The analyst noted that the Relative Strength Index (RSI) indicates that XRP is overbought.
When considering future price targets, the analyst employed Fibonacci analysis but remains cautious about projecting an upward movement to $11.50. Instead, he anticipates a more realistic top in the $6 or $7 range, which he views as a substantial increase from current levels.
He compares the current market cap of XRP, around $66 billion, to its previous peak in 2018, underscoring that substantial growth still lies ahead.
To reach $3.20 again, XRP would need to achieve a market cap of $180 billion, while a climb to the Fibonacci target of $11 would require tripling the market cap. A range of $6 to $7 would suggest a market cap between $360 billion and $400 billion, effectively doubling its 2018 valuation.
