Leading economist and former forex analyst Moonchaser poured cold water on traders expecting XRP to reach $100,000. She explained that Ripple’s native token reaching $100,000 is not realistic, and traders are misunderstanding the concept of market value.
XRP enthusiasts have long been calling for the token to reach unimaginable heights because the altcoin’s performance is not tied to its market cap. However, the economist highlighted that XRP, like any other cryptocurrency, is affected by supply, demand, and liquidity.
Also Read: Ripple Backs $1B SPAC as Analyst Sets XRP Price Target at $10K
XRP: The Difficulties in Reaching the $100,000 Milestone
The former forex analyst gave an example of the US dollar, comparing it to XRP’s performance. She noted that the currency’s total value is measured by the amount in circulation among day-to-day users and in global trade. This makes the US dollar’s value change every day due to the balance between supply, demand, and liquidity. “Currency does not mean a capless asset,” she reminded traders.
The analyst revealed that the same applies to XRP, which follows similar principles and the market laws. The altcoin functions within the same market frame that governs all other financial assets. She added that even if its price is not tied to its market cap, Ripple’s native token has to bow down to the market’s trajectory. “Market capitalisation is simply price multiplied by circulating supply, a measure of total market value,” she wrote.
Also Read: The Highest XRP Price Could Reach Before 2025 Ends
The former currency analyst also stressed that XRP might not climb above Bitcoin at any time. She also revealed that Ripple’s native token’s dream of hitting $100,000 is nothing but a myth. Its market position depends on measurable data and not hype and buzz from enthusiasts. After reaching an all-time high of $3.65, the altcoin slipped in the charts and is now at $2.40. It is down nearly 17% in a month and is mostly attracting bearish sentiments.
Credit: Source link
