$3.4 in Sight After Multi-Year Rally
As the total cryptocurrency market capitalization approaches the $4 trillion mark for the first time since the days of Satoshi Nakamoto, Ripple Labs’ XRP is thrust into the spotlight with its impressive performance. The utility-based altcoin was leading 20 cryptocurrency projects with a gain of more than 10% mid-New York session on Tuesday, December 17, trading at around $2.64.
As a result, the large-cap altcoin has a fully diluted valuation of approximately $265 billion and average daily trading volume of approximately $21 billion, just 21% away from retesting its all-time high (ATH) set in January 2017. Additionally, XRP price has broken out of a multi-year symmetrical triangle consolidation, following an impressive rally of over 420% over the past two months.
What’s next for XRP price?
After being stuck in a bearish consolidation for the past two weeks, XRP price has broken out of a descending channel, setting the stage for a new bull rally. According to legendary trader Peter Brandt, XRP price has finally broken out of a bullish flag pattern, signaling the beginning of a rally toward all-time highs.
From a technical analysis perspective, the next target for XRP price is $3.4, which is in line with the daily 0.618 Fibonacci extension line. However, XRP price on the daily time frame must consistently close above the resistance around $2.6 for a rally towards ATH to be confirmed.
Ripple’s solid foundation
Ripple has grown over the years to become a major blockchain payments company focused on the cross-border space. To complement XRP’s utility in cross-border payments, Ripple launched its much-hyped fiat-backed stablecoin RLUSD to compete with existing leaders such as Tether’s USDT and Circle’s USDC.
The development of XRPL has significantly contributed to the mainstream adoption of XRP. Additionally, Ripple’s core developers plan to implement multi-chain smart contract compatibility for the XRPL network by next year.
