If you think that $589 in't possible then let me explain you something about how financial markets work.
I am not talking about probability but about possibility only. I am also not talking about fair value (covered by esoteric trading solutions).
The following image shows a DOM (depth of market) which illustrates the basic concept of every financial market.
For this example we use a dom from the emini s&p500 futures. For illustration purposes certain orderflow mechanisms will be simplified.
If somebody wants to buy or sell into a market, there are two possibilities. You could either use a market order or a limit order.
A market order instantly executes at the best ask or the best bid price (ask for buy and bid for sell) against a resting limit order.
While a limit order can be placed at any price (for buying below the best ask price and for selling above the best bid price) and can be removed at any time as long as the order isn't filled against a market order.
Market orders are what moves the market and are generally considered more aggressive than limit orders as they provide a guaranteed fill while limit orders have no guarantee of being filled if price doesn't trade at the limit price.
In our example we have a current price at 2168.00 which is the best ask with a resting limit sell order volume of 290 orders waiting to be filled.
Now every market buy order coming in at this price will fill against these 290 limit sell orders. If somebody buys 300 contracts at 2168.00 with a market order, then the following happens:
1. The 290 resting limit sell orders at 2168.00 are filled and the new best ask price moves up to 2168.25
2. At 2168.25 the remaining 10 contracts (300 - 290 = 10) are filled, leaving a new best ask volume of 833 resting limit sell orders (843 - 10 = 833).
3. New limit buy orders can now be placed at 2168.00 which becomes then the new best bid price.
If you want to see this live, you can for example check out https://cryptowatch.de/markets/binance/xrp/usdt/1h where you can see limit sell and buy orders and the actual market orders being filled.
Limit orders will usually be placed at prices where we expect the price to trade. In the case of XRP this is mostly around the current price and from $0 to $3.50.
In the case of an unannounced good news event a few things happen.
1. More people start buying using market orders as they don't wanna miss the move.
2. Sellers removing their limit sell orders which results in a thinner orderbook above the current price as nobody wants to sell into a starting bull run.
3. When price starts to move through important levels, stop loss orders of market short orders are being executed, adding to the demand.
Let's imagine there is such a crazy news event and price shoots to the upside, what do you think will happen as soon as the price leaves the area of the expected trading range?
There will for sure be limit sell orders at $5.00 at $10.00 etc. but between these psychological price levels there will be a few to no real resistance for price.
And the more price accelerates jumping in $1 steps instead of jumping from drop to drop, there will be FOMO, Panic, Fear and Greed.
At the same time, there will be an exorbitant amount of demand from a lot of people and institutions.
Maybe it would take a few million XRP to eat through the limit sell orders placed from the current price to $3.50 but we are talking about crypto.
We are talking about a lot of people who missed BTC and however such a news event would need to look like, i don't think it is impossible for XRP to reach such a price in a very short time.
My two cents as a futures and currency trader for more than 10 years ?
Stay tuned for an exciting time ahead of us.
Al the Best,