Here's why an explosion in XRP price to $40 is “definitely possible” ⋆ ZyCrypto

According to well-known crypto analyst Steph is Crypto, XRP could be on the verge of an extraordinary rally, potentially rising by over 7,400% from its current price.

In his speech on Monday, Steph provided a detailed analysis, pointing out that while this target may seem ambitious, it is achievable due to the combination of technical indicators and fundamental factors.

In particular, the analyst highlighted the much-discussed seven-year symmetrical triangle pattern on the monthly chart.

“The price is currently still being compressed in this huge symmetrical triangle pattern,” he explained.

He further pointed out that such patterns have led to significant price increases in the past, citing a case from 2017 when XRP saw a dramatic rise after a similar breakout. According to him, this suggests that history may repeat itself.

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We are approaching the apex and the technical target of this pattern in case of a breakout is around $40,” he added, stressing that the price of XRP “definitely a possibility and maybe even much higher.”

The expert further bolstered his argument regarding XRP's market cap. Despite some skepticism about a $40 price target due to XRP's current market cap of just under $30 billion, Steph argued that market cap alone does not accurately reflect the cryptocurrency's potential.

“The market capitalization of a cryptocurrency does not reflect the actual value or money in the protocol”, explained Steph. “It is more of a theoretical number based on the assumption that all coins in circulation could be sold at the current price, which is unrealistic.”

Furthermore, Steph highlighted that the total market capitalization of altcoins, excluding Bitcoin and Ethereum, has yet to reach new all-time highs, indicating significant growth potential in the altcoin space, including XRP. He pointed to upcoming developments, such as the expected launch of Ripple’s USD stablecoin (RLUSD), which could further strengthen the XRP ecosystem.

However, Steph’s optimistic analysis is valid even if XRP is going through a difficult phase.

However, Artur Kirjakulov, CEO of XPMarket, who brought the issue to light, says that while this decline may seem alarming, it could also be a sign of a reallocation of capital towards newer, innovative projects within or outside the XRP ecosystem, potentially leading to new development opportunities, especially with the upcoming launch of the stablecoin.

At press time, XRP was trading at $0.57, up 2.56% in the last 24 hours.