XRP's Value Potential: Bitrue Predicts $10 Price Target as Traders Show Optimism

Summary: Bitrue, a cryptocurrency exchange, suggests that the current price of XRP, around $1.42, is significantly undervalued, believing it should be closer to $10. Despite recent price declines, the futures market indicates that traders are primarily placing long positions, reflecting confidence in a future price recovery. While some analysts warn of potential short-term corrections, long-term forecasts remain bullish.

Key Takeaways

Bitrue claims that XRP should be priced at $10, seven times its current value of $1.42.
The futures market shows a rise in open interest, indicating traders are betting on a price recovery for XRP.
Some analysts anticipate a short-term price drop, while others maintain a bullish long-term outlook.
XRP's potential growth is supported by increasing institutional interest and legal developments.

XRP

XRP's Current Market Position

On Tuesday, Bitrue made a striking assertion regarding XRP: the cryptocurrency is currently trading far below its true value. With XRP priced around $1.42, Bitrue estimated its fair market value at $10 — which would create a substantial market capitalization of over $610 billion.

Futures Market Analysis

Insights from the Derivatives Market

Futures market data has attracted attention, revealing that XRP's open interest has surged to $2.60 billion, reflecting a 7% increase in just one day, based on CoinGlass analytics. This trend suggests that traders are opening new long positions instead of increasing short positions, which commonly occurs in bearish markets.

Analysts have noted that even though XRP's price is declining, there's been no significant rise in short positions. This unusual behavior indicates traders are getting ready to buy long, revealing confidence for potential gains.

Market Sentiment and Price Predictions

Despite a nearly 4% decline in XRP's value over the past week, the futures market does not appear to anticipate further downturns. Many traders are seemingly capitalizing on the current weakness, expecting a price rebound rather than continued decreases.

XRP's market cap is currently positioned at $85 billion. Source: TradingView

Potential for Price Correction

However, not all analysts predict a straightforward recovery. Some technical analyses suggest that XRP may still be undergoing a corrective phase, referencing the Elliott Wave theory. This scenario could see the price rise to around $1.51 only to experience a sharper decline afterward.

Key support levels to watch include $1.12 for a potential double-bottom formation, and $0.87, identified as a solid long-term buying zone. Some traders perceive the current market activity as a late-stage shakeout, assessing investors' conviction before a larger upward movement.

Longer-Term Outlook for XRP

Long-term price forecasts for XRP remain optimistic, with targets of $5 and even $10 continuing to circulate among market analysts and community members. These projections are linked to broader narratives, such as increasing institutional interest, Ripple's recent resolution of its legal issues with the SEC, and the expanding use of blockchain payment systems.

Some recent developments, like Missouri's designation of XRP as an official reserve asset, have added institutional credibility that the cryptocurrency previously lacked.

Despite the generally positive outlook, there are indications of skepticism. XRP has a history marked by gradual price increases intermittently accompanied by sharp declines. Even proponents of the $10 target recognize that significant volatility is likely as XRP moves toward that price level.

At present, XRP remains in a tight trading range, experiencing a weekly downturn yet maintaining its position. The derivatives market indicates that traders are not abandoning ship; instead, they seem to be biding their time.

Featured image from Gemini, chart from TradingView