XRP Rally to $8 Now on Cards If Market Dominance Hits 10%: Here’s How

Legendary analyst EGRAG is optimistic that XRP will reach new heights if it realizes 10% dominance of the global crypto market. 

The XRP’s market cap surged following its recent resurgence to cross above $1 for the first time since 2021.  The spike above $1 elevated the XRP market value beyond $63 billion, allowing altcoin to reclaim the sixth-largest spot per CoinGecko data. 

A look into the weekly charts shows a double-digit uptick in XRP price, lifting its dominance to nearly double at 2.09%. The leap is significant given that by mid-2024, XRP’s dominance estimated at a low of 1.05%. 

Is Dominance Spike Possible for XRP?

Recent insights by crypto analyst EGRAG show that the historical data alongside Fibonacci-based analysis hints that XRP could attain impressive dominance gains. The analyst reflects on the 2017 and 2021 market cycles, deploying the Fibonacci levels to identify a breakout in the XRP dominance. 

EGRAG notes that the 2017 cycle saw XRP hit peak dominance coinciding with the explosive bull run. Additionally, the analyst notes that the 2021 cycle demonstrated recent highs in dominance. 

EGRAG identifies the confluence zone within the 5.9% to 6% dominance level where a pair of Fibonacci levels interest. As such, the Fib 1.0 from the 2021 cycle intersects with the Fib 0.5 from 2017. Such convergence represents the resistance zone with an upside movement above this level, signaling the start of the dominance rally. 

EGRAG insights indicate that XRP is exiting the ‘Shake Out zone’ he identifies as the prolonged spell of consolidation and subdued dominance. The analyst suggests that as the token edges closer to the 2.5% dominance level, data shows that the subsequent major test is at the Fib 0.5 level. The latter would correspond to 5.92% dominance for XRP.

Accumulation Activity Precedes Potential Surge

The past week saw $53.3 million tokens added, translating to $526 million in the portfolio. The substantial accumulation elevated the whale collective holdings to nearly 18% of the altcoin’s circulating supply. 

The rise in whale activity emerges as retail traders portray a contrasting account. The wallets with balances below 1M XRP offloaded 76M tokens, equivalent to $88M, likely to tap the short-term profits. 

The divergence in the holders’ behavior illustrates that while the retailers portray hesitancy, the whales eye XRP’s long-term potential, doubling down.  

XRP Price Targets at 10% Market Dominance 

EGRAG argues that XRP dominance could scale towards 10% – 20% in this cycle. With XRP destined to cross above the 1 threshold, the altcoin would invalidate the bearish narrative tag. 

The analyst considers that such will present opportunities for retesting higher Fibonacci levels at 0.702 and Fib 1.618, translating to 11.61% and 16.65% dominance, respectively. Such levels will correspond to the broader bullish call for the XRP, where its dominance could attain a 10%-20% range.

EGRAG points to the optimistic outlook by Ripple Labs chief executive Brad Garlinghouse for the crypto market. The analyst recalls that in April, the executive forecasted the global crypto market value could skyrocket to $5 trillion by December this year. By press time, the market cap is up 1.3% to $3.32 trillion. 

The analyst considers the figure to be $1.68 shy of the $5 trillion milestone. If the target is attained while XRP captures 10% of the dominance, EGRAG illustrates that the price could spike to $8.77. Furthermore, 20% XRP dominance will lift the altcoin price to $17.54.

While XRP is down 2.7% over the past 24 hours to trade at $1.10, it still retains a healthy 102% gain in the past 14 days per CoinGecko. Despite the pullback, the 4-hour chart shows that the Supertrend indicator is green at  0.9714, which is still below the XRP price to signal its bullishness. 

Notably, while the XRP outperforms several large-cap assets, it needs to rally 680% and 1460% to attain $8.77 and $17.54, as predicted by EGRAG.