A More Grounded Near-Term look at XRP + Comments on Market Cap!
Hi friends! Welcome to this update analysis on XRP! As you all know, everyone had mixed emotions about my last XRP analysis, which illustrated how there is a technical path for price to rise north of $200, based on a possible rally off the bottom of a massive uptrend channel, which could happen later this year. The majority of the comments that expressed objection, cited the market cap, and how the XRP market cap could never reach into the trillions, which would be needed to produce such a high market price. However, I think there is a fundamental misunderstanding out there, regarding the very unique capability for XRP to reach highs that seem unattainable. Here's how it can work, in a nutshell.
XRP is designed to revolutionize cross-border payments around the world, by working as a vehicle that banks can utilize to move funds instantly and effortlessly, to and from any place on earth. Many people say that banks don't use XRP, and that they don't need to use it, and that they will just create their own coin like JPM coin. But, while they are valid arguments, those assessments are flawed. In fact, there are dozens of banks that are already using XRP, and there are hundreds that are looking at the potential of XRP and Ripple at this very moment. The growth of Ripple as a company, and the growth of their client base (financial institutions) is absolutely undeniable. Anyone who does even a few minutes of research, can discover those facts. The point is that if Ripple can continue to grow (which right now there is absolutely no reason to believe that they wont) and their client base continues to expand (which it is) so too will the adoption of XRP (which is also happening.)
So, that brings me to market cap. As banks adopt XRP as a vehicle to expedite their competitive nature, regarding global cross border transactions, the USE of XRP will also rise. What you have to realize, is that banks move hundreds of trillions in capital world-wide. Hundreds of trillions! So, for XRP to reach $220, with a roughly 43 billion coin supply, that would equal a market cap of approximately $9.5 trillion. So, if we go back to the hundreds of trillions of capital that banks move around the world, 9.5 trillion of mostly bank possessed funds is not as far fetched as you may think.
Obviously, this would require Ripple's XRP to develop into a globally adopted investment vehicle, and in my opinion, the fundamentals are incredibly positive for that to become a reality.
As for Bitcoin, I do believe that BTC could eventually have a multi-million dollar valuation. At the current spread of price of XRP/BTC, it's about 0.0000276. So, if that spread was maintained, and we have a bitcoin value of $8,000,000, XRP would be worth $220. That would require BTC's market cap to be $144 trillion, which is definitely a stretch, but these figures may not come for a decade or more. The global money supply is constantly growing, as central banks print trillions and trillions into existence. So, if major crypto adoption is taking place in a decade or so, these multi trillion dollar valuations could certainly be a reality.
Now, back to earth. Today, we'll have a more grounded and realistic look at XRP. After all, we're just trying to retake $1. Right? So, looking at the daily chart, you can see that XRP is being squeezed between the bottom of a triangle (in blue) and the falling EMA ribbon. Price is starting to move up into the ribbon, after recently holding the bottom of the triangle as support. The black line in the EMA ribbon is the daily 50 EMA. Just above that, I have a green moving average, which is the 200 EMA. So, you can see that there is a boatload of resistance above the current price. However, XRP has had several explosive rips higher in the past year, as you can see on the chart. If we get another one of those explosive moves higher, XRP could suddenly find itself above all of that major resistance. In other words, the resistance is very clustered right now, and it wouldn't take much for XRP to break above it all.
Mixed in with all of that EMA resistance, is also the most important structure on this chart, which is the top of the blue triangle. That's where the real battle is, and it's right in the middle of that cluster of EMA resistance. So, if XRP can get through this tight cluster of resistance, we could see a quick run towards 0.50500. That's what I'm really looking for in the short term, because if that sort of movement plays out, it could complete the right shoulder of a massive inverted head and shoulders pattern on the chart, which is outlined in pink dashes. Obviously, that is yet to be seen. But if XRP can quickly charge above this cluster of resistance, it would greatly increase the probability of XRP printing an inverted head and shoulders pattern.
$220 is possible, but for now, let's keep our eyes set on $1. =D
#PoopLovesYou
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
XRP is designed to revolutionize cross-border payments around the world, by working as a vehicle that banks can utilize to move funds instantly and effortlessly, to and from any place on earth. Many people say that banks don't use XRP, and that they don't need to use it, and that they will just create their own coin like JPM coin. But, while they are valid arguments, those assessments are flawed. In fact, there are dozens of banks that are already using XRP, and there are hundreds that are looking at the potential of XRP and Ripple at this very moment. The growth of Ripple as a company, and the growth of their client base (financial institutions) is absolutely undeniable. Anyone who does even a few minutes of research, can discover those facts. The point is that if Ripple can continue to grow (which right now there is absolutely no reason to believe that they wont) and their client base continues to expand (which it is) so too will the adoption of XRP (which is also happening.)
So, that brings me to market cap. As banks adopt XRP as a vehicle to expedite their competitive nature, regarding global cross border transactions, the USE of XRP will also rise. What you have to realize, is that banks move hundreds of trillions in capital world-wide. Hundreds of trillions! So, for XRP to reach $220, with a roughly 43 billion coin supply, that would equal a market cap of approximately $9.5 trillion. So, if we go back to the hundreds of trillions of capital that banks move around the world, 9.5 trillion of mostly bank possessed funds is not as far fetched as you may think.
Obviously, this would require Ripple's XRP to develop into a globally adopted investment vehicle, and in my opinion, the fundamentals are incredibly positive for that to become a reality.
As for Bitcoin, I do believe that BTC could eventually have a multi-million dollar valuation. At the current spread of price of XRP/BTC, it's about 0.0000276. So, if that spread was maintained, and we have a bitcoin value of $8,000,000, XRP would be worth $220. That would require BTC's market cap to be $144 trillion, which is definitely a stretch, but these figures may not come for a decade or more. The global money supply is constantly growing, as central banks print trillions and trillions into existence. So, if major crypto adoption is taking place in a decade or so, these multi trillion dollar valuations could certainly be a reality.
Now, back to earth. Today, we'll have a more grounded and realistic look at XRP. After all, we're just trying to retake $1. Right? So, looking at the daily chart, you can see that XRP is being squeezed between the bottom of a triangle (in blue) and the falling EMA ribbon. Price is starting to move up into the ribbon, after recently holding the bottom of the triangle as support. The black line in the EMA ribbon is the daily 50 EMA. Just above that, I have a green moving average, which is the 200 EMA. So, you can see that there is a boatload of resistance above the current price. However, XRP has had several explosive rips higher in the past year, as you can see on the chart. If we get another one of those explosive moves higher, XRP could suddenly find itself above all of that major resistance. In other words, the resistance is very clustered right now, and it wouldn't take much for XRP to break above it all.
Mixed in with all of that EMA resistance, is also the most important structure on this chart, which is the top of the blue triangle. That's where the real battle is, and it's right in the middle of that cluster of EMA resistance. So, if XRP can get through this tight cluster of resistance, we could see a quick run towards 0.50500. That's what I'm really looking for in the short term, because if that sort of movement plays out, it could complete the right shoulder of a massive inverted head and shoulders pattern on the chart, which is outlined in pink dashes. Obviously, that is yet to be seen. But if XRP can quickly charge above this cluster of resistance, it would greatly increase the probability of XRP printing an inverted head and shoulders pattern.
$220 is possible, but for now, let's keep our eyes set on $1. =D
#PoopLovesYou
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-