Despite a sharp 10% drop in the past 24 hours, XRP remains in contention to break past its 2018 all-time high, provided that current market trends and altcoin momentum hold steady. According to Bitpanda’s deputy CEO Lukas Enzersdorfer-Konrad, the recent slump doesn’t rule out a comeback, with market conditions setting the stage for a potential rally.

Market Pullback Dampens Momentum

XRP is currently trading at $3.21, a significant drop from its recent year-to-date high of $3.66, achieved last Friday. The token still trails its all-time high of $3.84, set in January 2018.

Wednesday’s 10.20% plunge, according to data from Nansen, has cast doubt on XRP’s near-term strength, yet crypto experts suggest that this dip might be short-lived.

Enzersdorfer-Konrad notes, “While it’s difficult to pinpoint exact levels in such a fast-moving market, a further move beyond the current all-time high would not be surprising if market conditions remain favourable and capital rotation from Bitcoin continues.”

XRP’s Fate Tied to Altcoin Market

The token’s performance is now closely tied to the broader altcoin rally. The CoinMarketCap Altcoin Season Index recently flipped from “Bitcoin Season” to “Altcoin Season,” indicating increased interest in non-BTC assets.

Bitcoin dominance has also declined by 5.41% over the last 30 days, a strong signal that investor capital is rotating into altcoins like XRP. This macro-level capital shift could serve as a key driver for XRP’s potential breakout.

“Short-term price action for XRP will depend on whether the current momentum across the altcoin market continues,” Enzersdorfer-Konrad said.

No Clear Catalyst, But Bullish Bias Remains

While some altcoins are moving due to individual catalysts such as partnerships or tech upgrades, XRP lacks such a standalone trigger. Analysts suggest its bullish outlook will rely more on macro sentiment and liquidity flows rather than Ripple-specific developments.

The Bitpanda executive adds, “There’s no clear catalyst that would make XRP outperform on its own.” However, he highlights that XRP remains “highly sensitive” to broader altcoin sentiment and regulatory narratives.

Confidence among investors also remains cautiously optimistic. XRP is holding above its 50-day exponential moving average (EMA), typically seen as a bullish indicator and its Relative Strength Index (RSI) has cooled to around 50, indicating neutral momentum. This suggests the token is neither overbought nor oversold, offering room for upward movement.

Can XRP Hit $7 to $10?

While there’s no consensus, some analysts believe XRP’s upside could be more dramatic if the current rally continues. Independent crypto analyst Dom recently projected a potential price target of $7 to $10, depending on how aggressively capital flows into altcoins over the coming weeks.

However, Enzersdorfer-Konrad stresses the importance of market breadth: “The key thing to watch now is whether momentum broadens across other altcoins or remains concentrated, this will help determine how sustained XRP’s move is.”

Watching the Altcoin Trend

XRP’s recent drop is part of a broader market correction, but analysts aren’t calling an end to the rally just yet. The altcoin’s ability to surpass its 2018 all-time high hinges on continued investor confidence, favourable market conditions, and sustained liquidity across the crypto ecosystem.