In recent weeks, analysts have focused on XRP's dominance in the crypto market and its potential growth.
Current Market Situation of XRP
Analyst EGRAG Crypto has highlighted the XRP dominance chart and its interaction with the Fibonacci 0.5 level. Currently, XRP dominance stands at 5.75%, and this level has repeatedly acted as a resistance for nearly six years. EGRAG believes this resistance is being tested again and may break.
Historical Dynamics and Predictions
Historically, in May 2017, XRP reached a dominance level of 31.33% with a price of $3.80. Since then, dominance has steadily declined, struggling to return to the Fibonacci 0.5 level. The analyst points to several attempts to break this level that occurred in 2019 and 2020, with a sharp drop in dominance linked to the SEC lawsuit in December 2020.
Conclusion and Future Perspectives
EGRAG expects that if XRP breaks through the resistance level, this could lead to dominance rising to 27%. However, achieving this requires significant market changes, such as heightened activity from new investors and potentially underperformance from Bitcoin and Ethereum. If 27% dominance is reached, XRP's market cap could increase to $1.485 trillion, suggesting a substantial price rise.
While EGRAG's predictions are optimistic, it's important to note that they depend on multiple factors and require a cautious investment approach.
