Experienced market analyst Peter Brandt has delivered a pessimistic prediction for XRP at the end of the year, indicating possible challenges for the cryptocurrency to sustain its recent positive performance.
Brandt showcased his latest assessment for XRP's market capitalization by the end of the year and outlined two scenarios. The first scenario suggests a market cap close to $116.67 billion, while the second scenario paints a more negative picture with a valuation just above $60 billion.
Both scenarios indicate a decrease from XRP's current market value at approximately $2.09 per token with a market capitalization of $121 billion. Brandt's analysis is grounded in a technical pattern he observed on XRP's price chart resembling a head-and-shoulders formation, often indicating a trend reversal. He mentioned that if this pattern unfolds, XRP could potentially drop to $1.07.
Brandt pointed out that breaching $1.90 would confirm the pattern and likely trigger a significant correction of over 50%, but surpassing $3 could invalidate the bearish outlook.
The cautioned outlook from Brandt follows a significant surge in XRP's price since late 2024. This surge was attributed to various factors, including favorable stances towards digital assets during the Trump administration's return and reduced regulatory uncertainty after the SEC dropped lawsuits against Ripple and other crypto companies.
Despite this positive momentum, Brandt's warning suggests that XRP's recent gains might not be sustainable in the face of heightened bearish pressure.
Ripple CEO Brad Garlinghouse, amid discussions about Ripple's potential initial public offering (IPO), clarified in a recent communication on X that the company does not plan to pursue an IPO in 2025. Garlinghouse emphasized that Ripple is financially stable and currently focused on product development and business expansion, implying that the company is not actively seeking external funding at the moment.
While Garlinghouse did not completely rule out the possibility of an IPO in the future, he highlighted that Ripple is assessing the advantages of going public and stressed that it is not a top priority currently. The evolving regulatory landscape, especially under new SEC leadership, could also impact Ripple's strategic decisions.
In contrast to other crypto firms preparing for IPOs, Ripple seems content staying private until circumstances are more conducive for going public.