Why XRP could hit $8 after reclaiming a 3-year high

XRP has emerged from what can be considered a hibernation, with the token reclaiming the $1 mark for the first time in over three years. This move puts questions about XRP’s long-term sustainability to rest, with an analyst predicting further upside for the asset.

This potential stems from XRP’s dominance in the cryptocurrency market, which has reclaimed the 1.66% level—a significant milestone after three years—according to an analysis by Cryptoinsightuk in an X post on November 16.

This dominance level has historically acted as a launchpad for upward movements, with dominance seeing an average continuation of 740% in similar scenarios.

According to the analyst, XRP’s market capitalization could soar to $444 billion if this trend repeats, translating to a price of approximately $8 based on the current circulating supply.

Dominance is forming higher lows alongside a strong surge in trading volume, signaling a renewed interest in XRP. The relative strength index (RSI) has also moved into bullish territory.

XRP’s path to $2

Adding to this bullish outlook is an analysis of Harmonic Patterns, which suggests that after reclaiming the $1 level, XRP could target levels near $2, supported by forming a bullish Crab harmonic pattern.

The monthly chart highlights a potential upward trajectory. XRP aims for $1.99, aligning with the 1.618 Fibonacci extension. Key levels to monitor include $2.98 as an extended target, provided momentum continues.

As reported by Finbold, analysts have noted that breaching the $0.76 resistance could be interpreted as the asset’s long-awaited breakout finally materializing.

In previous cycles, XRP struggled to sustain bullish momentum toward $1, mostly consolidating below $0.60.

However, conditions in the current bull cycle align with a period of anticipation for more crypto-friendly policies under the incoming Donald Trump administration.

Notably, Ripple has spent the better part of the past four years embroiled in a legal tussle with the Securities and Exchange Commission (SEC), led by Chair Gary Gensler. With Trump taking office, there is growing speculation that Gensler may leave the regulator.

To this end, Ripple CEO Brad Garlinghouse has attributed the current rise in cryptocurrencies to President-elect Trump’s potential policies, calling him a “crypto president” and praising his openness to blockchain innovation.

XRP price analysis

At press time, XRP was trading at $1.06, having rallied by a staggering 30% in the past 24 hours. On the weekly chart, the token has gained 92%.

XRP’s technical setup remains bullish, as the asset is trading above the 50-day and 200-day moving averages. However, caution is warranted, as XRP’s 14-day RSI is flashing oversold signals, indicating the possibility of short-term downward pressure or consolidation.

While reclaiming the $1 level is a major milestone, maintaining it as support will be crucial for sustaining further gains.

Featured image via Shutterstock

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