Market Capitalization Often Confuses Casual Investors, and Detractors Have Weaponized It Against Bullish XRP Price Predictions

The concept of market capitalization often confuses casual investors, and detractors have weaponized it against bullish XRP price predictions.

Despite being a hot topic among crypto traders, the concept of market capitalization still manages to confuse casual investors, and detractors have deftly weaponized it against bullish XRP price predictions. However, prominent analyst EGRAG CRYPTO (@egragcrypto) is cutting through the noise with some clear facts about market cap in the context of the fast-approaching bull cycle.

In a recent post on X, the analyst stated plainly that “the market cap isn’t just the money injected into XRP.” Instead, it's the value of the asset at a given price multiplied by its circulating supply.

This comment comes after several community analysts have highlighted how new capital does not enter the market cap in a 1:1 ratio in specific phases of a bull cycle.

In certain stages, each dollar injected into XRP can result in a 15x to 30x multiplier, raising the market cap by $15 to $30 billion. One expert recently pointed to a 601x multiplier, and this dynamic supports his $1.5 trillion market cap prediction.

In another post, EGRAG CRYPTO joined a long list of crypto experts who have debunked the myth that XRP cannot grow because of its market cap. The analyst, who is known for his technical analysis skills, highlighted a well-formed W pattern (cup and handle pattern) as the core of his current thesis.

The analyst has been tracking the W pattern for some time, and his analysis shows that XRP has held above both its monthly close from its previous all-time high and the key Fibonacci 0.618 level since December 2024. He sees that as a clear sign of bullish accumulation.

Using non-logarithmic Fibonacci extensions, he set a conservative target of $4.50 for XRP, with a $270 billion market cap. On a logarithmic scale, the projection stretches to $25 with a $1.5 trillion cap. Referencing XRP’s 242% surge from Fib 0 to 1.618 in 2017, he suggests a similar move now could push the market cap to $450 billion, sending the price to $7.60.

Chart Patterns Point to Strength

EGRAG CRYPTO further reinforces the bullish case with chart patterns alongside Fibonacci projections. In addition to the W pattern, he highlights a bullish pennant, visible on both XRP/USD and XRP/BTC, signaling strength across pairs.

His pennant projection targets a $1.2 trillion market cap or $20 per XRP. A Fib move from the 2018 high to the 2020 low points to $17. He also sees a potential bull flag, boasting a 67–70% breakout rate, stronger than the pennant’s 50–55%.

Overall, EGRAG CRYPTO’s analysis shows that XRP’s current price of $2.29 does not reflect its full upside potential. As the asset is on the verge of a breakout, we could soon see double-digit targets.