XRP was one of the hottest cryptocurrencies on the market in the third quarter of 2022. The cryptocurrency soared at intervals, reacting to details of the court case between the SEC and Ripple Labs (the parent company of XRP) about whether or not Ripple Coin is a security.
However in October, the bullish momentum appears to be fading from most cryptocurrencies on the market, and the crypto winter is beginning to catch up.
At the time of writing, most of the top ten cryptocurrencies on the market are either in the reds, or have made no significant gains over the last seven days.
The court case between Ripple and the SEC is still ongoing. However, Ripple settling the lawsuit may lead to a supply shock that catapults the price of XRP over new highs and may make up for its relatively stagnant growth over the years since the case began in 2020.
XRP Price Analysis
Despite the explosive gains on XRP in the third quarter of 2022, the cryptocurrency shows reduced bullish strength.
Over the last two weeks, XRP has lost about 3.54%. This dip in Ripple coin is significantly more than the dips in the rest of the cryptocurrencies on the market. This is especially surprising because the better part of the cryptocurrency market expected Ripple coin to forge ahead in its bullish campaign.
At the time of writing, the price of XRP is at the $0.4597 zone and is currently testing the support of its price channel, as illustrated above.
The bulls are expected to be ready and waiting at this zone and will start to push back against the bears at any moment. However, the Ripple coin is showing no clear signs of a bounce.
This may indicate a lack of strength from the bulls at this point and may be interpreted as an opportunity to push the prices into a breakdown of this support level.
However, if the bulls manage to push the price of Ripple coins upwards at the last minute, a rally to the $0.56 zone might be possible. If this bounce to the upside doesn’t happen, prices may decline and hit the $0.35 level.
However, the RSI on the 4-hour chart shows a bullish crossover, as illustrated above. This may indicate that the bulls are starting to gather strength, and a bullish bounce may happen.
Will Ripple Hit “5 Digits”
Eric “E. Smitty” Finnerud, Founder and CEO of the US-based record-label, “Sound Alive Records,” has commented on what he believes the future of XRP may hold.
According to a tweet from Finnerud, the record-label CEO says that “XRP won’t hit $1000”. Instead, Finnerud asserts, (XRP) will hit “5 digits and beyond”.
As expected, commenters on Finnerud’s tweet responded, saying that Finnerud’s predictions are “unrealistic” if one considers its market cap.
For XRP to hit a five-figure price, as Finnerud suggests, its market cap would have to be higher than the overall crypto market cap currently.
If Finnerud’s price prediction has any chance of happening, the market cap of XRP wouldn’t just have to match that of Bitcoin. It would have to surpass it.
However, another alternative that might back Finnerud’s hopes would be if XRP tokens were burned on a massive scale.
The music producer is a well-known XRP bull that claims to “regularly use” XRP for day-to-day activities.
Even going as far as giving out free Ripple coins in giveaways, Finnerud has been one of the biggest proponents of XRP and a few other cryptocurrencies over the last few months.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)