- XRP has been estimated to have a fair market value of $122,580 on the basis that the total global wealth is estimated to be around $5.3 quadrillion.
- An analyst has predicted that the asset would have to breach four key resistance levels – $2.42, $2.52, $2.72, and $5.85 to “secure a smooth ride upsurge.”
Ripple’s XRP is currently trading at $2.4 after recording an explosive run to “print” 148% gains on the monthly price chart and a 312% uptick on the 90-day price chart. Even so, the asset is significantly undervalued as its potential fair market value is reported to be around $122,580.
Delving into XRP’s Fair Value
Recently, Venture Capital firm Valhil Capital explored several valuation frameworks to ascertain the potential of XRP. According to the report, the Collateralization Model emerged as one of the most reliable frameworks for assessing the position of XRP in the area of universal collateral assets in a tokenized economy.
In explaining more about this framework, it was stated that the Collateralization Model “zooms” into the future and assumes the tokenization of all global financial systems. Specifically, this includes the central bank reserves, commodities, real estate, derivatives, etc. Using XRP as the key token for collateralizing these tokenized assets, the model estimated that the asset could be worth $122,580 per token.
One of the key factors in this projection is that the conclusion was drawn on the basis that the total global wealth is estimated to be around $5.3 quadrillion. Additionally, a 1.25x risk adjustment ratio was factored into the projection. To accurately assess the present value of the tokenized economy, the model estimated that the global tokenized asset industry could reach $6.2 quadrillion by 2030. Dividing this estimate by the $50.7 billion circulating supply of XRP produced the fair market value of the token stated above.
The report highlighted regulatory and economic challenges that have hindered the realization of this value. Additionally, the estimation excluded variables that could affect the projection’s accuracy.
Analysts Speak on XRP
Subjecting the asset to technical analysis, an analyst identified as Dark Defender has predicted that XRP could be in line for an unprecedented height. However, it would have to first breach four resistance levels – $2.42, $2.52, $2.72, and $5.85. Currently, four key areas have been identified as supports- $2.29, $2.24, $2.10, and $2.02.
For analyst Egrag Crypto, XRP would validate two crucial scenarios before making any upside. The first is to stabilize within the range of $2.27 and $2.50 before breaking out of the upside.
The second is to break down to $2.27 and consolidate within the range of $2.17 and $2.27. When this happens, the asset would form a double bottom and embark on a bullish continuation. He also observed that the XRP price is ahead of the Exponential Moving Averages (EMAs) on the higher time frames (HTF). According to him, the price needs to range a bit longer to allow EMAs to catch up
Another analyst, Ben Armstrong, has also predicted that XRP could hit $4.5 either this month or next month, which coincides with our recent prediction.
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