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A few analysts say Ripple’s XRP is preparing for explosive price action. Steph, an analyst under the username “StephIsCrypto,” offers a bold, positive outlook for XRP and says a significant price rally is on the way thanks to increased global liquidity.
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In a published analysis, Steph highlighted the token’s historical relationship with increased liquidity and structural patterns such as the declining channel and the Bollinger Bands. According to Steph, these are the main factors causing it XRP for a price increase soon.
At the time of writing, XRP was trading at $0.5052, up 0.5% in the past 24 hours, but has rallied almost 2% over the past week, Coingecko data shows.
XRP and its relationship to global liquidity
Higher global liquidity often favors Ripple’s XRP, driving price increases. In Steph’s analysis, a token’s liquidity, or available cash flow in the market, traditionally helps XRP sustain price action in previous cycles.
BUY #XRP BEFORE IT COSTS $14.00!!! pic.twitter.com/e8wY3UVq11
— STEPH IS CRYPTO (@Steph_iscrypto) November 3, 2024
Steph is now looking at the same trajectory, with global liquidity increasing thanks to favorable central bank policies. He cites possible action by the Federal Reserve, which could put additional money into circulation, weakening the fiat currency but creating more capital. Steph sees the token as a great investment when the liquidity wave occurs.
As the weighted global liquidity index rises, riskier assets increase
Steph’s dissertation on XRP is also based on the movement of the Weighted Global Liquidity Index (WGLI). The WGLI tracks the world’s money supply by looking at central bank balance sheets and other key financial statements.
The analyst states that the index reflects possible price movements of risky assets, such as XRP. If the index goes up, the crypto assets will usually go up too. According to the analyst, any XRP price increase occurred immediately following a rise in the index.
Currently, there is a difference between the price of XRP and the index. Although there has been an increase in global liquidity, the price of XRP appears stable. But for Steph, this setup acts as his bullish signal.
Bollinger Bands pinching and descending channel favor SRP
According to Steph, even the Bollinger bands and Descending Channel have set up the altcoin for a favorable run. Since 2021, XRP has been trading in a descending channel, with multiple resistance prices and declining volumes.
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He pointed out that the asset’s Bollinger Bands are compressed. If the bands in cryptocurrency are tightening, it indicates likely price action. For example, XRP’s Bollinger Bands compressed in 2017, followed by a rise in the asset’s price.
If the analysis and data trends are correct, the analyst expects XRP to trade at $14, which translates into an increase of 2,670%.
Featured image from Techopedia, chart from TradingView
