Ripple’s cryptocurrency, XRP, is attracting significant attention as analysts forecast a strong price rally on the horizon. Crypto analyst Steph, known online as “StephIsCrypto,” shares an optimistic outlook, suggesting that XRP’s price is primed to surge. Steph attributes this potential upswing to increased global liquidity, along with the altcoin’s structural chart patterns, namely the descending channel and Bollinger Bands.
At the time of reporting, XRP was valued at $0.5052, marking a 0.5% gain over the past 24 hours and a near 2% increase over the past week, according to Coingecko data.
XRP and the Influence of Global Liquidity
Steph points to a historical pattern: as global liquidity rises, XRP’s price has often followed suit. Global liquidity, defined as the cash flow accessible across financial markets, has a track record of fostering XRP’s price action during previous cycles. Steph’s analysis considers central bank monetary policies that inject liquidity into economies, such as possible Federal Reserve interventions. Increased liquidity can weaken fiat currencies, which could shift capital toward cryptocurrencies like XRP. As a result, Steph sees XRP as a strategic investment amid potential liquidity surges.
Global Liquidity Index and Risk Assets
A significant portion of Steph’s bullish outlook on XRP is based on movements in the Weighted Global Liquidity Index (WGLI). This index measures global money supply by examining central bank balance sheets and other financial statements. Steph asserts that, historically, XRP and other high-risk assets have rallied as WGLI increased. Currently, a discrepancy exists between XRP’s stable price and the upward trend in global liquidity, which Steph views as a bullish indicator for XRP.
Technical Indicators: Bollinger Bands and Descending Channel
Technical analysis also supports Steph’s prediction. XRP has been trading within a descending channel since 2021, marked by repeated resistance levels and reduced trading volumes. Steph notes that XRP’s Bollinger Bands—a volatility indicator—are compressing, which typically signals an impending price movement. XRP saw a similar Bollinger Bands squeeze in 2017, which preceded a significant price rally. Combined, the descending channel and compressed Bollinger Bands suggest a favorable environment for XRP’s price to break upward.
If Steph’s analysis holds, XRP could potentially reach $14, representing an astonishing increase of 2,670%.
