XRP price has been under pressure amidst a broader market pullback following the Federal Reserve’s hawkish stance on the economy. The altcoin’s price dropped from $2.72 to $1.96 within four days, marking a significant 28% decline. Despite a rebound, XRP is still down 25% from its peak, currently trading around $2.16. The market cap of XRP currently stands at $132 billion, lower than its all-time high of $165 billion in December.
In January 2018, XRP captured 49.4% of Bitcoin’s market cap when its market valuation reached $128.5 billion. However, over the years, XRP’s market cap ratio to Bitcoin’s has decreased, especially due to the SEC lawsuit in December 2020. At the beginning of this year, XRP only held 3.9% of Bitcoin’s market cap, with a valuation of $33 billion compared to Bitcoin’s $838 billion market cap.
Following a November rally, XRP’s market cap has surged to $132 billion, capturing about 6.8% of Bitcoin’s market cap, which currently stands at $1.93 trillion. Despite the increase, it is still far below the 2018 ratio of 49.4%. Market experts believe that XRP’s price will continue to rise after the ongoing correction. If XRP were to reclaim the 49.4% Bitcoin market cap ratio, its price could potentially reach $16.6, representing a 621% increase from the current price of $2.16.
Market expert EGRAG had previously projected a price target of $16 for XRP using Linear Regression analysis. With a circulating supply of 57.25 billion tokens, reaching a market cap of $953 billion, equivalent to 49.4% of Bitcoin’s current valuation, would push XRP’s price to $16.6. This would be a significant increase and could potentially propel XRP into double-digit figures.
In conclusion, the potential for XRP to reach a two-digit figure lies in its ability to recapture the percentage of Bitcoin’s market cap it held in 2018 before the SEC lawsuit. Despite past underperformance and a decline in market cap ratio to Bitcoin, the recent surge in XRP’s market valuation indicates a positive trend. With the ongoing correction expected to end soon, market experts anticipate further price gains for XRP. If XRP can reclaim the 49.4% market cap ratio to Bitcoin, it could see a massive surge in price to $16.6, marking a significant increase from its current levels.
