XRP has shown resilience by bouncing back from its recent dip below $2, but experts suggest the asset may still face challenges ahead. A well-known analyst has posited that a further drop towards this level could actually set XRP up for greater success in the long run.
Recently, the price of Ripple’s cross-border token surged dramatically after the US elections, experiencing gains that once made it approach $3. However, that momentum reversed, leading to significant price drops throughout late December. The most recent decline brought XRP below $2 on December 30 during a broader market pullback.
In a turn of events, this popular cryptocurrency has demonstrated impressive recovery, rising over 20% since that low point and currently trading around $2.45. This rebound has allowed XRP to reclaim its position as the third-largest cryptocurrency by market capitalization, overtaking Tether’s USDT.
Analyst Ali Martinez has pointed out that XRP is currently struggling to break through a tough resistance level at $2.73. This barrier has thwarted its price rise on multiple occasions. If XRP fails to breach this resistance soon, a drop back to $2.05 becomes a realistic possibility. However, Martinez sees this potential decline as having hidden advantages that could propel XRP to a new all-time high exceeding $3.4 and potentially reaching $11.
The current price behavior of $XRP suggests it is consolidating within a significant bull pennant pattern. Until it surpasses the $2.73 resistance, a retreat to $2.05 remains on the table, but it could also pave the way for an explosive rise towards $11.
Now, let’s do some quick math—if XRP were to hit $11, this would imply a market cap soaring past $600 billion, potentially edging out Ethereum in the rankings. While this scenario might appear more plausible under a favorable political environment, reaching such heights remains a stretch at present.
Considering all of this, the crypto space is filled with unpredictability, and while a hike to $11 for XRP stirs excitement, it’s wise to approach such predictions with both hope and caution.
