Well-regarded analyst Kevin Cage recently projected a possible surge in XRP market cap to the same Fibonacci extension Bitcoin and Ethereum hit in 2021.
Cage’s recent analysis comes on the back of the ongoing uncertainty surrounding XRP price action. Notably, XRP has failed to overcome the $3 psychological mark despite Bitcoin (BTC) hitting a new all-time high during the latest recovery push and the rest of the market gaining considerably.
While XRP has followed the uptrend, it has done so at a slower pace, up only 3% over the past week, as opposed to Bitcoin’s 9% gain and Ethereum’s 12% upsurge within the same timeframe. Amid this divergence, Ethereum has surged to a valuation of $568.5 billion, while XRP remains under the $180 billion mark, as the gap between both assets widens further.
Cage Remains Bullish Despite XRP’s Struggles
However, Cage expects XRP’s market cap to surge massively from the current position despite the recent struggles. For context, after XRP hit a new all-time high valuation of $216.69 billion on July 18, it faced a downtrend and relinquished the $200 billion, $190 billion, and $180 billion marks.
Now, Cage believes a recovery above these points is imminent. His 1-month chart of XRP’s market cap movements identifies multiple Fibonacci extensions beyond the $128.51 billion mark (Fib. 1) that represent XRP’s possible valuation targets on the journey to greater heights.
With XRP currently boasting a market cap of $178.61 billion at press time, data from the chart shows that it now trades above the 1.27 Fibonacci extension at $161.8 billion but below the next pivotal extension of 1.618 at the $204.6 billion mark. Note that XRP’s market cap surpassed Fib. 1.618 in July, when it crossed $204 billion.
Today, it now trades below it, but Cage expects another run above the valuation mark. Beyond this, the next Fibonacci level is the 2 extension at $252.05 billion, which would mark a new all-time high in the XRP market cap and price. After this, the next levels are Fib. 2.618 ($328.4 billion) and Fib. 3.618 ($451.95 billion).
XRP Price at the Ultimate Market Cap Fib Target
Interestingly, Cage believes that the ultimate XRP market cap target sits at the Fibonacci 4.236 mark, which aligns with $528.29 billion. From the current market valuation of $178.61 billion, XRP needs a 195.8% increase to reach this ultimate target.
Despite the upsurge required, Cage has expressed optimism that XRP’s market cap could reach this mark. He called attention to the fact that Bitcoin and Ethereum claimed this same Fib. 4.236 level on their monthly valuation charts during the 2021 bull run.
If XRP ever claims this mark, its price would have soared to greater heights. Specifically, with XRP featuring a circulating supply of around 60 billion tokens, a market cap of $528.29 billion, aligning with Fib. 4.236, would translate to a price of $8.8 per XRP. Notably, Dark Defender, a market analyst, previously predicted a possible XRP run to the $8 level this cycle.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
