XRP has seen a sharp 10% decline over the past 24 hours, falling to $3.21 after reaching a year-to-date high of $3.66 last Friday. Despite the correction, analysts remain optimistic about the Ripple-linked token’s long-term potential, with Bitpanda’s deputy CEO Lukas Enzersdorfer-Konrad suggesting a return to its all-time high is still achievable.

“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,” Enzersdorfer-Konrad told Cointelegraph.

XRP’s all-time high of $3.84 was set in January 2018. Since then, the token has seen several bullish cycles and corrections, with its performance largely tied to broader altcoin trends and regulatory developments.

Altcoin Season Fuels XRP Momentum

The latest optimism for XRP comes amid a broader rally in the altcoin market. CoinMarketCap’s Altcoin Season Index flipped from “Bitcoin Season” to “Altcoin Season” on Sunday, indicating that investor interest is shifting from Bitcoin into alternative cryptocurrencies.

This shift has coincided with a drop in Bitcoin dominance, which has declined by 5.41% over the past 30 days. Historically, such a decline often marks the beginning of aggressive capital rotation into altcoins, a trend that may benefit XRP if it continues.

Enzersdorfer-Konrad pointed out that XRP’s movements tend to reflect overall market sentiment more than isolated catalysts. “Short-term price action for XRP will depend on whether the current momentum across the altcoin market continues,” he explained.

Market Sentiment and Liquidity Key to XRP’s Future

While XRP remains one of the most well-known altcoins, its trajectory is still largely dependent on macro sentiment, liquidity, and regulatory clarity. Enzersdorfer-Konrad noted that XRP is “highly sensitive” to shifts in broader altcoin confidence and policy direction.

“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.” he said.

Liquidity remains strong across the crypto market, with several altcoins posting double-digit gains over the past month. If this risk-on sentiment continues, XRP could benefit from renewed investor interest, particularly among those seeking gains outside of Bitcoin and Ethereum.

Technical Indicators Support Bullish Bias

Despite the recent pullback, technical indicators continue to paint a positive picture for XRP. According to a recent Cointelegraph report, XRP is holding above its 50-day exponential moving average, a level often used to identify bullish momentum.

Additionally, XRP’s relative strength index (RSI) has cooled to a neutral 50, indicating that the token is neither overbought nor oversold. This positioning suggests room for further movement in either direction, but combined with bullish sentiment, it may serve as a launchpad for another rally.

Crypto analyst Dom has projected a potential XRP price of $7 to $10, depending on how aggressively the broader market moves. While such targets are speculative, they underscore growing optimism among traders.

Long-Term Potential Remains Strong

Though XRP has dropped sharply in the short term, the bigger picture remains promising. A combination of technical resilience, strong market liquidity, and a potential continuation of altcoin season could propel XRP to challenge and possibly surpass its 2018 all-time high of $3.84.