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HomeCryptocurrencyXRP to $10? Analyst Spots Potential Breakout via Dominance Chart

XRP to $10? Analyst Spots Potential Breakout via Dominance Chart

XRP dominance, the metric representing XRP’s market share compared to the total cryptocurrency market capitalization, has experienced a significant decline since its July 2023 surge. However, this downtrend might be about to turn around, as popular crypto analyst EGRAG CRYPTO (@egragcrypto) believes a change is coming.

The Decline of XRP Dominance

EGRAG CRYPTO highlights a near 70% drop in XRP dominance since its July 2023 peak. This decline can be attributed to several factors, including:

The Rise of Alternative Cryptocurrencies: The cryptocurrency market is constantly evolving, with new projects emerging and established ones gaining traction. This competition can lead to a redistribution of market share, potentially causing dominant players like XRP to lose some ground. Stellar (XLM), a major competitor to XRP, recently launched smart contracts on its mainnet, putting it a step ahead of XRP and increasing the competition in the digital asset space.

Market Fluctuations: The overall cryptocurrency market is known for its volatility. Periods of market downturns can disproportionately affect specific cryptocurrencies, potentially leading to a decrease in their dominance metrics.

Potential Shakeout and Averaging Strategy

EGRAG CRYPTO suggests that XRP dominance might experience a further decline, potentially reaching the yellow box he tags “The Shake Out” zone on his dominance chart. This zone bottoms out at 0.73% dominance, which many will interpret as a negative sign. However, the analyst believes it could be a final shakeout before a potential price increase.

He reveals that he will begin his Dollar-sell Average strategy once XRP reaches this level, anticipating the reversal. This strategy involves investing a fixed amount of money into a particular asset at regular intervals, regardless of the asset’s price.

By potentially entering the market during a period of low dominance, investors following this strategy could accumulate XRP at a potentially favorable price point and invest continually as it grows.

Long-Term Potential and Price Projections

EGRAG CRYPTO emphasizes the significance of a statement by Brad Garlinghouse, CEO of Ripple, the company that majorly distributes XRP.

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Garlinghouse suggested a scenario where XRP could capture 10% of the total cryptocurrency market capitalization, estimated at around $5 trillion. EGRAG CRYPTO recently referenced this when predicting the trajectory of the entire crypto market. Based on this hypothetical scenario, he suggests that XRP’s price could reach around $9-$10.


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Tobi Loba
Tobi Loba
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.
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