Ripple-linked cryptocurrency XRP has seen a sharp 10.20% decline in the last 24 hours, dropping to $3.21 at the time of writing, according to data from Nansen. However, Bitpanda’s deputy CEO, Lukas Enzersdorfer-Konrad, believes that the asset could still make a strong recovery and potentially retest its all-time high of $3.84 set in January 2018.
“While it’s difficult to pinpoint exact levels in such a fast-moving market, a further move beyond the current all-time high would not be surprising if market conditions remain favourable and capital rotation from Bitcoin continues,” Enzersdorfer-Konrad told Cointelegraph.
XRP recently touched a year-to-date high of $3.66 last Friday, signaling growing momentum, but it has since pulled back significantly. Despite this correction, many analysts believe the broader altcoin rally could continue to push XRP higher in the coming weeks.
Altcoin Momentum and Capital Rotation Key for XRP
According to Bitpanda’s executive, XRP’s price movement is heavily dependent on the broader market trend. “Short-term price action for XRP will depend on whether the current momentum across the altcoin market continues,” he said.
CoinMarketCap’s Altcoin Season Index, which tracks investor appetite between Bitcoin and alternative cryptocurrencies, shifted from “Bitcoin Season” to “Altcoin Season” this past Sunday. Meanwhile, Bitcoin dominance has dropped by 5.41% over the last 30 days, indicating a rotation of capital into altcoins like XRP.
Sentiment and Liquidity Driving XRP’s Outlook
Enzersdorfer-Konrad also noted that XRP remains “highly sensitive to broader altcoin sentiment and regulatory narratives.” If confidence in the altcoin market stays intact and liquidity levels remain strong, the potential for bullish momentum in XRP remains.
“The key thing to watch now is whether momentum broadens across other altcoins or remains concentrated — this will help determine how sustained XRP’s move is,” he added.
Crypto analyst Dom has also weighed in, predicting that XRP could rise as high as $7 to $10 if the wider crypto market continues its uptrend.
Technical Indicators Suggest Bullish Potential
Despite the recent dip, technical indicators still show bullish potential. XRP is holding above its 50-day exponential moving average (EMA), often seen as a support line in trending markets. The relative strength index (RSI) for XRP has cooled to neutral levels around 50, suggesting that the asset is neither overbought nor oversold, which may open the door for a renewed rally if momentum returns.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
