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Steph, a crypto market commentator, recently shared an analysis on X (formerly Twitter), predicting a major price surge for XRP.
His video outlined several technical and fundamental factors that support a strong, bullish outlook for the altcoin. According to Steph, XRP could potentially reach $40, though he advises viewers to approach this target with caution.
Technical Indicators Suggest a Major XRP Breakout
In the analysis, Steph pointed to important technical indicators that suggest an imminent breakout for XRP. He highlighted a symmetrical triangle pattern that has been forming in the XRP/USD chart since 2018. Several market analysts have identified this pattern.
Notably, XRP is currently at the apex of this triangle. This marks a point at which a breakout could occur. The setup resembles a pattern the market witnessed in 2017, which led to a significant price increase for XRP. This rally culminated in the $3.31 all-time high.
Steph believes that XRP’s price has faced suppression for years, especially in the wake of regulatory challenges, including the ongoing case between Ripple and the U.S. SEC. However, despite this suppression, he stressed that XRP might be gearing up for a massive price movement.
Comparing XRP’s performance to Bitcoin (BTC), Steph noted that XRP is massively undervalued against BTC. He recalled a period in 2021 when XRP outperformed Bitcoin by over 460% within a few months. According to the analyst, a similar or even more dramatic rally could be on the horizon.
Market Fundamentals Remain Strong
Besides the technical charts, Steph highlighted several fundamental reasons for remaining optimistic about XRP’s future.
He mentioned that major institutions, including banks, have continued to partner with Ripple. These partnerships could indicate XRP’s potential role in the broader financial system, especially as CBDCs become more prominent.
One of the more bullish developments he mentioned is Canary Capital’s recent filing for an XRP exchange-traded fund (ETF). The move followed an earlier filing by Bitwise for a similar product, confirming institutional interest in XRP.
Additionally, Steph discussed the broader crypto market, noting that cryptocurrencies like XRP could benefit from macroeconomic factors.
He pointed out that as global liquidity increases and central banks shift towards more accommodative monetary policies, risk-on assets such as cryptocurrencies are likely to see growing demand.
The weakening U.S. dollar and declining Bitcoin exchange reserves also indicate that large players are positioning themselves for a bullish phase in the market.
Caution on XRP Price Targets
Despite his confidence in XRP’s potential to break out in the near future, Steph urged the investing public to approach price targets cautiously. In his analysis, he mentioned that the $40 target for XRP is not guaranteed.
According to Steph, a more conservative target could be between $5 and $10, although higher prices are possible depending on market conditions.
He advised investors to lock in profits along the way rather than waiting for an exact price target, given the unpredictable nature of the market. While he does not expect XRP to reach $40 within the year, he believes in the possibility of a new all-time high by the end of 2024.