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Crypto market analyst Steph predicts that XRP could be on the verge of its most significant price rally yet, citing the potential impact of surging global liquidity.
The analyst made this assertion in his latest report on XRP price action. Notably, his chart points out the historical relationship between XRP’s price movements and global liquidity surges, suggesting a repetition of past trends.
XRP Could Rally on Liquidity Surge
The chart reveals moments when liquidity influx fueled XRP rallies. Notable surges occurred during the 2017-2018 and 2020-2021 cycles, where global liquidity provided a backdrop for rapid price appreciation.
Based on this pattern, analysts, including Steph, believe that XRP could be gearing up for a similar surge between 2024 and 2025, triggered by yet another liquidity increase.
Specifically, in 2017-2018, the influx of liquidity coincided with a significant rally, allowing XRP to spike by about 60,000% to the all-time high of $3.31 in January 2018. It bears mentioning that XRP underperformed during the 2017 bull run right before this spike.
This pattern repeated in 2020-2021, albeit with some differences in momentum and magnitude. Despite the SEC’s legal battle with Ripple, which negatively impacted XRP, the altcoin gathered enough strength to record a spike to $1.96 by April 2021.
Each time, XRP’s price benefited from broader market liquidity conditions. The current setup appears to mirror these past cycles, suggesting that another liquidity-driven rally looms. Currently, XRP is underperforming, a similar trend to what the market witnessed in 2017.
XRP Short-Term Outlook
Meanwhile, XRP’s short-term outlook warrants caution. XRP is currently trading at $0.5445, down 0.04% this morning. The altcoin has been consolidating within a symmetrical triangle pattern since early October, which brings the $0.55 price region into focus.
A decisive break above this resistance level could clear the path for further gains, with the next key target being the pivot point at $0.5929. Beyond this, XRP has the potential to test several resistance levels, with the R1 level at $0.6549, R2 at $0.6932, and R3 at $0.7553.
However, the bulls need to defend any drops. Should the price fail to break above the $0.55 level and face further selling pressure, key support levels to monitor are S1 at $0.5309, S2 at $0.4926, and S3 at $0.4305.
Further data from CryptoQuant confirms that XRP’s Relative Strength Index (RSI) is currently neutral at 59. An RSI reading near 60 suggests that the asset is showing strength but has not yet entered overbought territory, leaving room for further upside momentum.
In addition to the RSI, the Stochastic oscillator is neutral at 55.4. Similar to the RSI, the Stochastic indicates that XRP is in a balanced state, with neither strong bullish nor bearish pressure.