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For many holders, the prospects of XRP reaching $99 is a pipe dream, but to be honest, it is only a fantasy. When asked if he thought the price would reach $99, top trader Tony The Bull Severino quickly shut down this moonshot target by responding "Definitely not." He is also not incorrect. The current price of XRP is about $2.03, a long way from this absurdly optimistic forecast.
The RSI is maintaining levels on the monthly chart that were last observed in late 2017, which is generally a sign of strength. However, to even entertain a move to $99 would suggest a 50x rally from this point, propelling XRP to a market capitalization that would rival that of Bitcoin. That is not going to happen unless XRP somehow takes the place of the U.S. dollar, which is obviously a joke.
A descending triangle has been forming on the daily chart, indicating that XRP has been consolidating. Declining resistance has capped the price, and buyers can be found where the 100 and 200 EMA's converge. XRP might return to testing the $3 region if there is a breakout above this triangle, but not much more, unless there is a major catalyst. Additionally, metrics for on-chain activity and payment volume indicate a consistent rather than rapid increase in transactions.
A slight increase in XRP's burn rate indicates increased network usage but not enough to power a 50x rocket. If XRP breaks out of this consolidation, its current structure suggests a modest rally, but anything above $3-$4 in the near term would be pushing it. The hype is broken by Severino's realism in this situation: unless something utterly absurd occurs, XRP will not compete with Bitcoin.
For the time being, $99 is still a meme target, and traders would be well advised to view it as just that, a pipe dream. Keep an eye out for breakout attempts above $2.05, but adjust your expectations appropriately.
Vladislav Sopov
U.Today Editorial Team