Analysts predict XRP may rise to $34 in the current bull cycle. We examine the prospects for this growth and related risks.
Growth Prospects of XRP
XRP has rallied over 550% since November, leading analysts to forecast a potential target of $34. After breaking out from a seven-year double bottom, XRP saw a pullback, which technical analysts interpret as confirmation of further price increases.
XRP Ledger Metrics
Despite XRP's growth, metrics for its parent chain, XRP Ledger, indicate it is lagging behind other major projects. Its market capitalization of $190 billion is approximately 2,200 times the total value locked of $85 million.
Overvaluation Risks of XRP
Currently, over 95% of XRP's supply is in profit. This may suggest potential selling pressure that could complicate XRP's ability to maintain its upward trend.
While optimistic growth forecasts exist for XRP, vital metrics and market risks signal the need for caution regarding the current overvaluation of the asset.
