XRP Price News: As BNB Overtakes XRP Market Cap, Is $2 Next?

XRP (XRP) has been one of the most boring tokens during the beginning of altcoin season, as it has not yet made a new all-time high despite the positive momentum that the market as a whole is experiencing.

Apart from Solana (SOL), XRP is the only token that has not yet reached a new price record within the top 5 cryptocurrencies.

Top 5 Cryptocurrencies by Market Cap – Source: CoinMarketCap

As a result, the native asset of the Ripple blockchain was thrown out of the third spot by BNB Coin (BNB). The latter has now distanced itself from XRP by $9 billion as it made a new all-time high this week upon climbing above the $1,300 mark.

The XRP community seems frustrated by this development, and slow ecosystem growth seems to be the primary reason behind the token’s stalled performance lately.

The selling pressure has been strong every time XRP hits $3. Multiple failed attempts to climb above this mark have been followed by a drop to the key $2.7 support area, at which buyers still seem to be scooping up the token.

Two Potential Paths for XRP

The daily chart shows two potential scenarios for XRP depending on how macroeconomic conditions evolve. A weaker U.S. dollar favors a move up for XRP. For that to happen, the token needs to rise above $3.5.

XRP/USD Daily Chart (Bitstamp) – Source: TradingView

Momentum seems stalled as the Relative Strength Index (RSI) is jumping up and down the mid-line.

A convincing breakout would require trading volumes exceeding $10 billion plus a big move toward $3.7 at least in a few days.

In contrast, if bearish momentum continues and the market breaks this consolidation pattern to the downside, we could get a much steeper drop to $2, meaning a downside potential of 28.5%.

The 200-day exponential moving average (EMA) would be the last line of defense for XRP in this scenario. This key indicator currently sits at $2.65.

What’s The Most Likely Outcome for XRP?

Trading volumes have dried up lately for XRP, dipping below $3 billion at some point in late September. The most relevant price moves for this token tend to be the ones where volumes surpass the $10 billion, as they reveal that the price has hit a highly contested area for market participants.

The most likely outcome at this point seems to be a move below $2.7 to test buyers’ commitment to keep the token afloat. If XRP dips below this mark, it could indicate that bulls have given up on this effort and could result in a much more pronounced downturn.

That said, the opposite could also be true. If the market pushes XRP above $3.5, it could trigger a short squeeze that finally moves the needle to the $4 level for the first time in history.

Today’s speech from the head of the Federal Reserve, Jerome Powell, could catalyze such a move. If he confirms the Fed’s dovish stance, which should result in another interest rate cut during the next FOMC meeting, that could reassure analysts that market conditions will continue to be favorable for cryptos down the road.

If it turns out that the Fed had a change of heart as a result of the U.S. government shutdown, we could envision a big drop ahead that pushes XRP to the $2 level.