The XRP price is back to $1, but $2 may be a bit of a dream.

• XRP’s gains are driven by impressive fundamentals. It has reclaimed the $1 goal after three years.
• Its future rise to $2 depends on both its internal and external factors.

The last week has seen a strong increase in the price of Ripple [XRP], as it shattered expectations and surged back to the $1 mark – a milestone it hasn’t touched in over three years.

XRP’s resilience has been proven after months of consolidation.

The real test is about to begin.

The perfect storm: internal and external factors factors This has driven XRP to a new high, pushing it past $1 and into sixth place, overtaking Dogecoin [DOGE] Market capitalization has risen by more than 10%, to reach $60.45 Billion.

This raises the question: can XRP climb higher and aim for the $2 level next? Or is the rally still too ambitious with so many variables in play at this point?

Memecoins can be a roadblock unexpected. 

Typically, Bitcoin’s [BTC] Consolidation has played a major role in the growth of alternative assets, as investors redistribute their risk and rebalance portfolios.

The weekly gainers are similar to previous trends list The top 10 list is made up of both high and low-capital assets. Interestingly, 6 out of the 10 top tokens use memes.

The top three memecoins are still leading, despite XRP’s 80% increase in the past week.

The top performer alone has posted a four-digit weekly gain, adding fuel to the narrative of a potential ‘supercycle’ in the making.

MemecoinsXRP is facing a serious challenge from. DOGE (the largest memecoin) recently surpassed XRP to claim the sixth place in the market cap.

Although Ripple’s position has risen after an impressive rally in the market, DOGE may flip it back again. This adds a level of uncertainty to XRP’s ascent.

Ripple might need to wait for a little longer, given the changing dynamics. 

This target may seem slightly optimistic, especially with memecoins undergoing a dramatic shift from being volatile assets to leading the market during periods of high volatility –  signaling their evolution into legitimate players with real use cases.

XRP has consistently posted green candlesticks on its daily chart in less than 10 trading days. Daily highs have reached up to 20 percent. 

This rapid increase could however indicate an overextension. FOMO might not resurface anytime soon. Weak hands may start to cash in gains and send XRP down.

Bulls might have to turn $1 into support

The XRP Reserve has been rising steadily since the start of this month. It reached its highest point five days ago when 3.273 trillion tokens were traded. That’s a substantial 5.41% jump from the 3,105 billion tokens that had been held by the end of its first week.

XRP’s value remained static during the second-week, even though Bitcoin’s surge to $90k sparked a rally of other altcoins. This was reflected by the rise in currency reserves.

XRP’s reserves fell to 3.228 trillion when altcoins began overextending and those who were making profits started exiting. 

This suggests that investors, wary of Bitcoin entering a ‘high-risk’ zone, strategically minimized exposure to riskier assets.

They targeted XRP’s price five days ago as a ‘dip,’ using it as an opportunity to diversify their portfolios, as most altcoins had already hit a peak.

As exchange reserves are building again, investors appear to be shifting their focus to other assets in order to capitalise on this surge.

The $1 level may be only a temporary event, unless the bulls are able to turn it into a solid base.

Click Here to Read Ripple’s [XRP] Price Prediction 2024-25

For momentum to continue, it will be essential that $1 is turned into support. Monitoring whale activity becomes essential if bulls are successful, since it may signal that the rally will continue towards $1.15. 

Nevertheless, the rising pressure to sell, a hot RSI and memecoins’ outperformance pose major challenges. If the strategy fails, XRP may retrace to its base.