XRP Target: Traders Forecast Slow Path to $10

What to Know:

• Key takeaway #1 — XRP may see another sharp rise to a double-digit price, but similar market setups in 2022 and 2017 pointed to an extended consolidation period before this happens.
• Key takeaway #2 summarizing major data. XRP holds strong $1.80–$2 support since Dec 2024, which has historically produced 35%-90% price rebounds.
• Key takeaway #3 explaining trader or institutional implications. Onchain data suggest XRP is at levels that have previously preceded sideways price action.

XRP is showing potential for a significant price increase, possibly reaching double digits. However, historical market patterns suggest a period of consolidation may be necessary before such a surge. Analysis of past cycles indicates that XRP often experiences extended sideways trading after reaching certain levels, implying that investors should prepare for a potentially lengthy accumulation phase before seeing substantial gains.

XRP’s Potential Liftoff and the Need for Accumulation

XRP has defended the $1.78–$2 support band since December 2024, a level that has historically triggered 35%-90% price rebounds. If this pattern continues, XRP could gain another 57% by year’s end. Analyst Mikybull Crypto noted that XRP is “preparing for liftoff,” emphasizing the formidable support near the 2021 high at $1.96, suggesting a strong foundation for future price appreciation.

The current price pattern mirrors previous bull runs, with consolidation around previous all-time highs. According to analyst CryptoBull, the primary difference this time is the extended accumulation period needed to fuel even higher prices. This longer accumulation phase is crucial for building the necessary momentum for a significant breakout.

How Do Onchain Metrics Support the Consolidation Theory for XRP?

Onchain data supports the idea of consolidation before a major price movement. XRP’s net unrealized profit/loss (NUPL) indicator has entered the “capitulation zone,” which historically coincides with cycle bottoms. The NUPL measures the difference between the relative unrealized profits and losses of XRP holders. Previous market cycles show that transitioning to this capitulation zone often leads to extended price consolidation periods.

The market value to realized value (MVRV) ratio further reinforces this consolidation thesis. With a current daily reading of 1.23, significantly lower than the peaks of 14.73 in 2017 and 3.9 in 2021, XRP is relatively undervalued. This lower MVRV ratio suggests reduced profit-taking pressure and increased potential for sustained price appreciation, though consolidation may precede this recovery.

Analyzing XRP’s Historical Price Movements

After dropping below its previous highs in 2022, the XRP/USD pair oscillated between $0.30 and $0.70 for over three years before a 390% breakout in December 2024. A similar scenario could see XRP consolidating around $2 (the 2021 highs) for an extended period before a substantial upward breakout. This historical context suggests that patience may be required before XRP experiences another major price surge.

CryptoBull suggests that the next impulse could take XRP to $11, with the final wave reaching $70. While these targets are ambitious, they highlight the potential long-term upside if XRP follows historical patterns. The key is to recognize the need for a potentially lengthy consolidation period before any significant price appreciation occurs.

What Factors Could Influence XRP’s Future Price?

Several factors could influence XRP’s future price, including regulatory developments, adoption rates, and overall market sentiment. The ongoing legal battle between Ripple and the SEC has been a significant factor, and a favorable resolution could boost investor confidence. Increased adoption of XRP in cross-border payments could also drive demand and price appreciation.

Institutional sentiment and ETF flows could also play a role. Positive institutional sentiment and increased investment from ETFs could provide additional liquidity and support for XRP. Monitoring derivatives data, funding rates, and volatility will be crucial for understanding market dynamics and potential price movements. These factors, combined with the technical analysis, provide a comprehensive view of XRP’s potential future.

XRP’s Undervaluation and Latent Buying Pressure

Despite being “undervalued” at $1.90, according to some analysts, the duration of this undervaluation remains uncertain. Holding the $1.80–$2.00 support and reclaiming $2.22 would keep XRP’s bullish case intact. Latent buying pressure is slowly building up in the futures market, indicating potential for a future price increase. This buying pressure could be a catalyst for the next significant move.

The XRP Ledger continues to evolve, with new features and updates potentially driving further adoption and utility. Monitoring developments in the XRP Ledger and the broader XRP ecosystem will be essential for understanding the long-term prospects of the cryptocurrency. This continuous development and potential for increased utility could contribute to future price appreciation.

In summary, XRP shows signs of potential for significant price appreciation, but historical patterns and onchain data suggest that a period of consolidation is likely before any major surge. Investors should monitor key support levels, regulatory developments, and market sentiment to make informed decisions about XRP.

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Source: Original article