This Analyst Backs XRP to Hit $30 Based on Historical Charts

In the wake of the decisive end to the SEC and Ripple battle, XRP, the cryptocurrency affiliated with Ripple Labs, has recently experienced a significant surge in value, rekindling optimism among investors who recall its explosive growth in previous bull cycles.

The digital asset has risen by over 550% since November, briefly surpassing $3, prompting technical analysts to speculate on its future trajectory.

Moreover, crypto market analyst Gert van Lagen has projected a potential uptrend toward $34 within the current bull cycle, a prediction that has left many mulling over its feasibility.

Analyst Raises Market Optimism

On a positive note, Van Lagen’s analysis centers on XRP’s breakout from a seven-year double-bottom structure, a pattern confirmed by its ascent above the neckline at approximately $1.80.

Analyst’s confidence in further price appreciation and the breakout’s strength is evident as the subsequent pullback to this neckline acted as support. This prediction also relies on the 2.00 Fibonacci extension of the pattern, setting a target price of $34 by mid-2026.

Furthermore, historical parallels are drawn to XRP’s price action between 2014 and 2017, where a similar multi-year base culminated in a parabolic rally. Additionally, the crypto asset has also shown it can make big gains, going up 1,072% from its lowest points in 2022 and jumping 1,625% between 2020 and 2021.

Notably, factors such as a near-zero interest rate environment in the US and progress in the Ripple lawsuit, which brought increased legal clarity and exchange relistings, influenced these historical rallies.

Critical Questions

However, a critical aspect to consider is the divergence between XRP’s market capitalization and the activity on its underlying chain, XRP Ledger (XRPL). Despite a substantial market cap of approximately $190 billion, the total value locked (TVL) on XRPL stands at a comparatively low $85 million.

This results in a market cap-to-TVL ratio significantly higher than that of other major Layer-1 blockchains like Ethereum, raising concerns about XRP’s potential overvaluation relative to its on-chain utility.

Nonetheless, the forecast has not gone without public reaction. A crypto analyst identified as Marty.crypto on X states:

“Love the hopium but there’s no way the #3 crypto is going to more than 10x from a $198B market cap to $1.98T…right?, If you track with the global M2 then $150-180k is plausible.  But safe to say $XRP is not going to $34 baring some global financial black swan event that shifts from fiat to crypto.”

Moreover, the prediction projects a jump that would considerably increase its market cap to around $1.6 trillion, which is almost impossible to imagine at this point, given the current overall market cap of around $190 billion.

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