This is why XRP still has room for further growth
Market analyst Dom believes that based on historical price trends and current market conditions, XRP's price may rise further.
In a recent analysis, he noted that XRP exhibited a particular pattern at past cycle tops, which involved a rapid surge followed by an immediate drop. However, the current price trend deviates from this pattern, suggesting there may be further potential for increases.
This comment was made at a time when XRP was facing strong bearish pressure around the $2.3 high. Each attempt to break through the resistance range of $2.6 to $2.8 has met resistance, leading to a continued decline. Nevertheless, the asset's price remains below $2.4.
The past trend of immediate declines after cycle peaks
Dom believes this stable foundation is very bullish. He emphasizes past market cycles where XRP experienced significant increases but failed to maintain momentum.
For example, XRP surged sharply to $0.0614 in December 2013, only to immediately drop to $0.00281 months later. By December 2014, it fell to $0.02803 and experienced an immediate drop again. This occurred again in January 2018, when the price surged to $3.8 and then immediately dropped significantly.
The market also observed this trend in April 2021, when XRP rose to $1.96 and reached $0.95 in July 2023. In each case, XRP never established a stable price range at the peak, indicating that market participants failed to reach a consensus on value. As a result, prices quickly plummeted.
XRP maintains at $2
However, at this time, XRP's trading price has stayed above $2 for nearly three months. Unlike previous cycles, it has not quickly reversed from the peak. Dom believes that the stability of the price at this level over the long term indicates that the market is accepting these prices. This contrasts sharply with previous tops.
Dom explains that true cycle tops often form quickly, and traders do not get much opportunity to exit at high levels. As XRP continues to stay above the $2 range, the likelihood of further increases is higher than the likelihood of declines.
Additionally, in past cycles, XRP experienced a sharp increase in trading volume during price surges, followed by a rapid decline as the market rejected those price levels. However, this time, trading volume remains stable, indicating market participation below the current price.
If XRP forms another classic cycle top, trading volume may have already faded, and prices will begin to decline sharply. Conversely, the market continues to absorb supply at these levels.
Although Dom emphasizes that the possibility of further increases is high, when it will break through this range remains to be seen. Analysts like Austin Hilton believe the market may be waiting for significant developments. Currently, XRP is trading at $2.3, down 3% in the past 24 hours.
Personally, I believe the approval of XRP's ETF is just a matter of time, and the approval is bound to drive the single coin price up, with $5 or even $10 not being a dream.