XRP investors are fighting not only a legal battle but also a long price battle. Recently, XRP has shown massive price fluctuations, and now the question arises: is XRP on the verge of a breakout? Here’s a bold prediction related to the XRP price; let’s read on.
Renowned Crypto analyst Steph has put forth an interesting prediction: XRP may be on the brink of its most significant price rally yet, driven by increasing global liquidity. His latest report highlights the historical correlation between XRP’s price movements and global liquidity surges, suggesting that past patterns could be set to repeat.
Historical Context of XRP’s Price Movements
Steph’s analysis points to previous cycles where inflows of liquidity propelled XRP’s price. Notably, during the 2017-2018 and 2020-2021 periods, XRP experienced substantial rallies amid increasing liquidity. For instance, in 2017-2018, XRP’s price skyrocketed by a whopping 60,000%, reaching an all-time high of $3.31 in January 2018. Interestingly, XRP had initially lagged during the earlier stages of the 2017 bull run before making its explosive ascent.
The subsequent cycle from 2020 to 2021 also showcased XRP’s resilience, despite the ongoing legal challenges with the SEC that cast a shadow over its performance. During this period, XRP managed to climb to $1.96 by April 2021, indicating that broader market liquidity conditions can have a profound impact on its price.
Watch out for the Short-term Signs
Despite the optimistic long-term perspective, caution is warranted in the short term. Should XRP fail to break above the $0.55 level and experience increased selling pressure, key support levels to watch are S1 at $0.5309, S2 at $0.4926, and S3 at $0.4305. Current data from CryptoQuant reveals that XRP’s Relative Strength Index (RSI) stands at a neutral 59, indicating potential for upward momentum without entering overbought territory.
Plus, the Stochastic oscillator is neutral at 55.4, reflecting a balanced market sentiment with no dominant bullish or bearish forces at play.
Current Market Scenario
Presently, XRP is underperforming, echoing the trend observed in 2017. As of now, XRP is trading at $0.5445, down 0.04% for the day. The altcoin has been consolidating within a symmetrical triangle pattern since early October, highlighting the critical resistance level around $0.55. A successful breakout above this threshold could pave the way for further gains, with the next target at $0.5929. Additional resistance levels include R1 at $0.6549, R2 at $0.6932, and R3 at $0.7553.
