I recently saw an interesting analysis about XRP that caught my attention. A well-known crypto analyst believes that the current market consolidation shows very strong potential, especially as Bitcoin dominance begins to decline.
According to their analysis, the monthly chart shows a hidden bullish divergence in XRP. This means the price is making new lows but the RSI indicator is not indicating weakness. At the same time, XRP is testing a nearly seven-year-old upward trendline. This is acting as a strong support level.
When Bitcoin dominance significantly decreases, liquidity may start flowing into altcoins. In this situation, XRP could enter its next major expansion phase. The analyst projects that XRP's market cap could reach around $325 billion. Compared to the current valuation of $88.54 billion, this is about a 3.7x increase. If this target is achieved, based on the current 61.5 billion tokens, XRP's price would reach approximately $5.32.
Currently, XRP is trading at $1.44. From this price level, reaching the proposed target is possible, but it entirely depends on the trajectory of Bitcoin dominance. Currently, BTC's market share is close to 57%.
However, there is a risk. The analyst warns that a deep pullback or shakeout could occur. Even in this scenario, the monthly hidden bullish divergence will remain intact. According to them, either the price will go directly to the upper target, or it will do so after a final shakeout.
Comparing to the 2017 market cycle, during that time Bitcoin dominance fell from 95% to 37%. XRP increased by over 70,000% during that period. In the current cycle, XRP has already increased by 600%, but Bitcoin dominance has not yet experienced a major structural break. If Bitcoin dominance weakens significantly around 2026, a second phase of growth in large-cap altcoins could be possible.
In summary, this analysis shows an intriguing potential, but the market can always do something unexpected. It is crucial to do your own research before investing.