XRP Price: Explosion Coming?

What to Know:

• A market analyst suggests favorable developments in the XRP ecosystem and broader market could lead to an unexpected XRP price surge.
• Despite bullish developments like the end of QT, potential XRP ETFs, and growing DeFi activity, XRP’s price has remained bearish.
• The analyst believes the market is misreading XRP’s position, suggesting these developments are setting the stage for a sharp price surge, relevant for institutional portfolios.

Despite a stream of positive developments, XRP’s price action has been largely bearish, frustrating many investors. Factors like the potential end of quantitative tightening by the Federal Reserve, the possibility of XRP ETFs, and increasing DeFi activity on the XRP Ledger have not translated into significant price gains. However, one market commentator believes this sets the stage for a surprise rally.

“We’re More Likely at the Bottom”

During a recent discussion, market analyst Zach Rector argued that current market conditions suggest XRP is nearing a bottom, not a top. He explained that the expansion of on-chain tokenized markets is increasing access and liquidity. Rector believes that while speculative betting markets may initially grab attention, they often pave the way for more serious tokenization efforts, driving institutional adoption.

Tokenization is Still Early

Rector highlighted the Depository Trust & Clearing Corporation’s (DTCC) plans to integrate parts of its operations on-chain as a significant step forward. Given DTCC’s role as a major securities clearinghouse overseeing trillions in assets, this move signals a growing acceptance of tokenization at the institutional level. Franklin Templeton’s Sandy Kaul has also spoken about releasing “trapped” global liquidity through tokenization, extending beyond traditional securities to include IP rights and other novel markets accessible via blockchain.

The scale of trapped capital across countries, international banks, and high-net-worth structures, as well as in real-world assets and intellectual property, is substantial. Ripple and the XRP Ledger are positioned to play a central role in these tokenization and infrastructure developments, potentially unlocking significant value for XRP holders.

Could XRP See $1 Again?

When questioned about XRP’s potential to revisit the $1 level, Rector dismissed it as highly unlikely, requiring an unforeseen black swan event. He revealed his long XRP position, stating that he continues to accumulate on dips, with buy orders set around $1.91, just above a key $1.90 order block. This suggests a strong conviction in XRP’s long-term prospects and a belief that current price levels offer an attractive entry point.

Major XRP Targets

Rector acknowledged an earlier entry into XRP at an average cost of $3.40, but has since lowered it to around $2.23 through dollar-cost averaging. He highlighted key historical support levels, noting that XRP has consistently formed higher lows throughout the year, reinforcing his view that a drop to $1 would require a severe market shock. This technical analysis provides a framework for understanding potential price movements and managing risk.

I just don’t see XRP going below $1 again unless we have a black swan event.

I’m long XRP and continue to add on dips. I have buy orders around $1.91 which is just above a key $1.90 order block.

— Zach Rector (@ZachRector7) December 13, 2023

Looking ahead, Rector anticipates a short-term downside move followed by a recovery, projecting Bitcoin reclaiming $100,000 and XRP rebounding towards $2.70. Longer-term, he outlined a Q1 2026 XRP target just under $10, with a potential range between $5 and $8, and eventually moving into double digits later in 2026. Over a 12-month horizon, he suggested XRP could reach the $15 to $20 range, indicating substantial upside potential.

While XRP’s recent price performance has been underwhelming, key developments in tokenization, coupled with technical indicators, suggest a potential shift in market sentiment. Institutional investors should closely monitor these trends, as they could pave the way for a significant and unexpected XRP price surge in the coming months and years. However, as always, investors should conduct thorough due diligence and consider their own risk tolerance before making any investment decisions.

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Source: Original article