The idea of the XRP price reaching $1,000 has once again gained traction as a social media platform X user called Drewski called for the Ripple community to unite in driving XRP to the unprecedented price level. While Drewski’s post reignited the conversation, the $1,000 price target is far from new, as it has been a goal shared by many XRP investors for years.
Bold $1,000 Price Target For XRP
Drewski’s comment on XRP echoes the entire cryptocurrency investor community. Particularly, it can be inferred that the investor is confident that the combined strength of the Ripple community can trigger a historic price surge for XRP.
Related Reading
Interestingly, the bullish price target for XRP is primarily driven by sentiment rather than technical analysis. However, XRP is no stranger to very bullish price targets when viewed through the lens of technical analysis. For instance, renowned crypto analyst EGRAG CRYPTO has provided analysis indicating that XRP could be on a trajectory towards $27. In another technical analysis, the analyst highlighted the possibility of XRP surging further to $99.
How Feasible Is The $1,000 Price Target?
While the prediction is exciting, there are skeptics who question whether XRP can realistically reach $1,000. Critics highlight the enormous market capitalization required to reach this level. For XRP to hit the $1,000 mark, it would either need to achieve a market cap of $99.99 trillion based on its current total supply or burn most of its supply. Many critics are also quick to point out the regulatory uncertainties surrounding XRP and Ripple.
If you ask many crypto participants, many will call XRP dead, considering the crypto has performed poorly than many expected in recent years.
Currently, XRP is trading at a fraction of the $1,000 target. At the time of writing, XRP is trading at $0.5515. The cryptocurrency has been down by 0.7% in the past 24 hours but remains up by 2.5% in a seven-day timeframe.
Related Reading: Bitcoin Price To $95,000? Here’s What Needs To Happen First
To reach the price target, XRP would need to go on a 1,800x price surge from the current level, which would make many of its holders multi-millionaires. Therefore, the prospect of such a move has kept the dream of a $1,000 price target alive for many XRP enthusiasts. A more realistic dream would see XRP break above the $1 mark before reaching the double-digit threshold at $10.
For XRP to go on a steady rally, it would need to continue growing in adoption in the traditional financial system. Furthermore, a final resolution to the ongoing Ripple-SEC lawsuit is needed, as achieving regulatory clarity could bring the dream of a $1,000 XRP closer to reality than ever before.
Featured image created with Dall.E, chart from Tradingview.com
- The US SEC has sued both Coinbase and Binance for allegedly violating securities laws.
- Most of the outflows are occurring through Ethereum Network.
- Between Monday and Thursday, there was a net outflow of $3.1B through the Ethereum network alone.
The US Securities and Exchange Commission (SEC) started by suing Binance, and its US affiliate that operates Binance.US before casting the net wider to include Coinbase. The SEC filed a lawsuit against accusing Binance, its American firm Binance.US, and CEO Changpeng “CZ” Zhao of breaking federal securities laws Monday. It then filed a lawsuit against Coinbase on Tuesday for allegedly selling unregistered securities to the general public.
The SEC lawsuit has spurred panic among investors especially since the SEC argues that several crypto assets listed on the exchanges are securities rather than digital assets. The tokens identified as securities have registered a significant price decline with Binance’s BNB, Polygon’s MATIC, and Cardano’s ADA experiencing the most drops.
$4 billion in outflows in four days
According to data from blockchain analytics companies Nansen and Glassnode, Binance, Binance.US, and Coinbase experienced a net outflow of $3.1 billion through the Ethereum network and $864 million in bitcoin (BTC) between Monday and Thursday.
Despite the regulatory difficulties, the exchanges processed the withdrawals promptly throughout the week and no delays have been reported so far.
According to Nansen data, Binance, the biggest cryptocurrency exchange in the world by trading volume, observed a net outflow of $2 billion on the Ethereum blockchain in just four days. This sum includes all Ethereum-based tokens including ETH. According to Glassnode’s data, BTC withdrawals were higher than deposits by about 31,868 BTC ($838 million).
Binance saw a sizeable net outflow on Wednesday of 13,953 BTC, the largest daily drawdown since December, when a faulty reserve report and the collapse of a rival exchange, FTX, undermined investor confidence.
Although the outflows seen this week were sizable, according to Binance’s crypto wallets, they only account for about 5% of all the assets held on the exchange.
According to Nansen, Binance.US saw net outflows of $75 million from the Ethereum network. The exchange is not tracked by Glassnode, so it is difficult to track the BTC outflows. It has however been met with the full wrath of the SEC, which has sought orders to freeze all .Binance.US assets.
For Coinbase, the Ethereum network saw a net outflow of $1 billion from Monday through Thursday according to Nansen. According to Glassnode’s data, Coinbase saw $25 million worth of Bitcoin outflows.Binance
The world’s largest cryptocurrency Bitcoin (BTC) has posed a solid 12% gain in the last few hours moving closer to $25,000 and hitting a new 6-month high. As of press time, BTC is trading 11.72% up at a price of $24,702 and a market cap of $476 billion.
The recent move has surprised traders with bearish sentiment in the market. On-chain data provider Santiment reports:
Bitcoin has launched to a 6-month high, surprising the bearish trader sentiment. With prices jumping above $24.2k for the first time since Aug. 14th, 2022, watch for whale addresses increasing as a sign of increased key stakeholder confidence.
As of press time, Bitcoin is leading all other altcoins in terms of percentage gains. Last month, we saw altcoins dominating over BTC when it came to crypto trading volumes. On-chain data provider Santiment explains that we can expect whales and trading volumes to shift from altcoins to Bitcoin.
With the latest move, the bulls seem to have the upper hand. As per the data from Coinglass, the total shorts liquidations for Bitcoin over the last 24 hours have surged to $85 million.
Furthermore, there’s growing optimism among investors in the Bitcoin derivatives market. The open interest (OI) in Bitcoin perpetual futures market shows that traders are building long positions. Also, the funding rates have been predominantly positive showing the willingness to go long.
Thus, on-chain data shows that the bulls are clearly in the driving seat and today’s price surge may not be a dead cat bounce. On the upside, BTC needs to give a daily closing above $25,000 to continue the momentum.
Altcoins Join Bitcoin to the Party
Along with Bitcoin, altcoins too have joined the party. The top ten altcoins are up anywhere between 9-12%. Ethereum (ETH) has shot up by 9.25% and is currently trading close to $1,700. Ethereum’s Layer-2 scalability platform Polygon has also shown a strong price rally recently with major whale participation.
Whales are still bullish on #Polygon!
On-chain data from @santimentfeed shows that large holders of 10-100 million $MATIC have bought 55 million #MATIC since January 16, totaling ~$60 million. pic.twitter.com/gk2Ce0xyDO
— Ali (@ali_charts) February 15, 2023
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.