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Several analysts say that Ripple’s XRP is preparing for explosive price action. Steph, an analyst under the username “StephIsCrypto”, offers a bold, positive view on XRP, saying that a significant price rally is on the way due to the rise of the global currency.
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In the published analysis, Steph highlighted the token’s historical relationship with currency uptrends and structural patterns such as descending channels and Bollinger bands. According to Steph, these are the main factors that have stopped XRP from increasing in price in the near future.
At the time of writing, XRP was trading at $0.5052, up 0.5% in the past 24 hours, but holding a nearly 2% rally over the past week, data from Coingecko shows.
XRP And Its Relationship With Global Liquidity
Higher global liquidity generally favors Ripple’s XRP, fueling price rallies. In Steph’s analysis, the liquidity of the token, or the flow of money available throughout the market, often helps XRP support the price action of previous cycles.
BUY #XRP BEFORE IT HITS $14.00 !!! pic.twitter.com/e8wY3UVq11
— STEP IS CRYPTO (@Steph_iscrypto) November 3, 2024
Steph is now looking at the same trend, where the global economy is growing because of the good policies of central banks. He mentions a possible move by the Federal Reserve, which would bring more money into circulation, thus weakening fiat money but creating more money. Steph sees the token as a great investment when liquidity increases.
As the Weighted Global Liquidity Index Increases, Riskier Assets Increase
Steph’s thesis 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 the balance sheets of major banks and other key financial statements.
The analyst argues that the index reflects the potential price movements of risky assets, such as XRP. When the index moves higher, crypto assets tend to grow. According to the analyst, all the price increases of XRP happened immediately after the increase of the index.
Currently, there is a difference between the price of XRP and the index. Despite the increase in currency around the world, the price of XRP seems to be stable. But for Steph, this setup serves as his bullish signal.
Bollinger bands are squeezing up and down at the Favor Channel SRP
According to Steph, even Bollinger Bands and Descending Channel have set the altcoin up for good. Since 2021, XRP has been trading in a bearish channel, with multiple resistance price points and declining volumes.
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He pointed out that the Bollinger Bands of this stock have been suppressed. When bands tighten in crypto, it suggests potential price action. For example, XRP’s Bollinger Bands were compressed in 2017, followed by a commodity price rally.
If the data analysis and trends hold true, the analyst expects XRP to trade at $14, which translates to a 2,670% gain.
Featured image from Techopedia, chart from TradingView