Why Analysts Say Now is the Right Time to Buy XRP - Before it Rises to $14
Some analysts say that Ripple's XRP is about to surge. An analyst named “StephIsCrypto” is particularly optimistic about XRP, believing that with more money globally, the price of XRP will rise.
In his analysis, Steph mentioned that XRP has had a strong correlation with the increase in money supply and certain patterns in the past. He stated that these are significant reasons for the potential price increase of XRP.
Looking at Coingecko data while writing this article, XRP is priced at $0.5052, having risen by 0.5% in the last 24 hours and nearly 2% over the past week.
What is the Relationship Between XRP and Global Money Supply?
When there is more money globally, Ripple's XRP tends to increase in price. Steph stated that whether it’s an increase in XRP’s own liquidity or a faster flow of money in the overall market, these factors have historically stabilized XRP’s price.
Now, Steph is observing this trend again, as central banks around the world are injecting liquidity and increasing the money supply. He also mentioned potential actions from the Federal Reserve, which would lead to even more money circulating, making fiat currencies less valuable, while increasing investment capital. With more money around, Steph believes XRP is a good investment.
With More Global Money, High-Risk Assets Become Valuable
Steph also looked at something called the Weighted Global Liquidity Index (WGLI). This index assesses the liquidity of various central banks and other financial statements to estimate how much money exists in the world.
The analyst thinks this index can reflect how high-risk assets like XRP may appreciate. When the index rises, cryptocurrency assets tend to follow. Each time XRP surges significantly, it has been after an increase in the index.
Currently, XRP’s price seems misaligned with this index. Although there is more money, XRP’s price remains stable. However, Steph believes this is a signal that a price increase is imminent.
Bollinger Bands Tightened, Downward Trend is Good for XRP
Steph also mentioned that the tightening of Bollinger Bands and the downward trend provides XRP with an opportunity for price appreciation. Since 2021, XRP has been in a downward trend with significant resistance and reduced trading volume.
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