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Analyst Eyes 1,000% XRP Rise Against Gold and Silver Index: Here’s What This Could Mean for Price
Analyst Eyes 1,000% XRP Rise Against Gold and Silver Index: Here’s What This Could Mean for Price
February 16, 2025
XRP
A prominent analyst indicates that XRP’s market cap is replicating its 2017 run against the PHLX gold and silver index, with a potential 1,000% surge on the horizon.
XRP has faced challenges over the past few weeks due to the persistent turbulence in the broader market. Prices have fallen from the $3 mark to just below the $2.6 region, causing XRP’s market cap to drop from a high of $175 billion at the beginning of February to the current figure of $149 billion.
The XRP/XAU Pair
Interestingly, market analyst EGRAG, in his recent report, analyzed XRP’s market cap performance against the Philadelphia (PHLX) gold and silver sector index. For context, this index trades on the Philadelphia Stock Exchange and tracks the stocks of 30 precious metal mining firms.
Notably, the Philadelphia gold and silver sector index trades with the ticker XAU, the same ticker for gold ounce, which can be somewhat confusing for some traders. However, it is crucial to carefully note this distinction. EGRAG’s chart shows the XRP/XAU pair, which essentially represents XRP’s market cap in comparison to the index.
The analyst pointed out that whenever the index (XAU) declines in dollar terms, the price of XRP against the index increases, which subsequently affects XRP’s price in dollar terms.
XRP Bounces Off Equilibrium and 7-Month MA
According to him, the XRP price against XAU seems to have rebounded above an equilibrium phase after a significant collapse that occurred this month. This collapse was due to XRP’s sudden price drop to $1.7 in what many have regarded as an unusual market movement.
XRPXAU 1M Chart | EGRAG Crypto
This crash in XRP’s price led to a decline in the XRP/XAU pair to the equilibrium phase, and the subsequent recovery enabled XRP to bounce off this equilibrium. Moreover, these recent price movements also resulted in a similar drop to the 7-month moving average (MA) and a subsequent bounce off this support.
Currently, the XRP/XAU pair is trading well above both the equilibrium phase and the 7-month moving average. EGRAG then highlighted three bullish monthly candles observed in the XRP/XAU pair from November 2024 to January 2025, during which XRP performed well against XAU.
He identified a similar trend from March to May 2017, in which XRP recorded three bullish monthly candles against XAU. However, the magnitude of growth from 2017 was significantly higher than what the market has seen in the current cycle.
EGRAG pointed out that a red monthly candle also appeared following the three green candles from 2017, indicating that the market is replicating the movements of 2017. If this holds true, then following the current red candle, XRP could surge against XAU in the coming months, mirroring the 2017 trend.
What a 1,000% Rise Could Mean for XRP Price
The market analyst emphasized that in 2017, this pattern resulted in a 1,000% spike in the XRP/XAU pair. Currently, this pair trades for $893.9 million, calculated by dividing XRP’s current market cap ($149.64 billion) by the current price of the PHLX gold and silver index ($167.39).
If a similar 1,000% spike occurs while the index price remains at $167.39, this would lead to a valuation of $9.83 billion for the XRP/XAU pair. Notably, such a value for the pair translates to an XRP market cap of $1.64 trillion, assuming the index trades at $167.39. At such a market cap, XRP’s price would stand at $28.5.
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