could be on the brink of its biggest price surge ever, underscoring the potential impact of rising global #liquidity.
The analyst made this claim in his latest report on XRP price movements. His chart shows a historical correlation between #Xrp🔥🔥 price movements and global liquidity spikes, suggesting a repeat of previous trends.
XRP Could Rise as Liquidity Increases
The chart shows times when liquidit#inflowshave driven XRP price increases. Notable surges occurred in the 2017-2018 and 2020-2021 cycles, when global liquidity provided the backdrop for rapid price growth.
Based on this model, analysts including Stef believe that XRP could be preparing for a similar rally between 2024 and 2025, fueled by another liquidity surge.
Specifically, during the 2017-2018 period, the liquidity influx coincided with a significant price surge that allowed XRP to increase by approximately 60,000% to an all-time high of $3.31 in January 2018. Notably, XRP underperformed during the 2017 bull run just before this jump.
This pattern has repeated itself in 2020-2021, albeit with some differences in momentum and scale. Although the SEC’s legal battle with Ripple has negatively affected XRP, the altcoin has gained enough momentum to record a jump to $1.96 in April 2021.
Each time, XRP’s price has benefited from changing market liquidity conditions. The current situation seems to mirror previous cycles, suggesting that another liquidity-driven rally is coming. XRP is currently underperforming, which is similar to the trend the market saw in 2017.
XRP Short-Term Outlook
Meanwhile, the short-term outlook for XRP is cautious. XRP is currently trading at $0.5445, down 0.04% this morning. The altcoin has been consolidating within a symmetrical triangle since early October, putting the $0.55 price area in sight.
A decisive break above this resistance level could pave the way for further gains, with the next major target being the pivot point at $0.5929.
However, buyers need to protect themselves from any dips. If the price fails to break above $0.55 and faces further selling pressure, the key support levels to watch will be S1 at $0.5309, S2 at $0.4926, and S3 at $0.4305.
Additional 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. Like the RSI, the Stochastic shows that XRP is in a state of balance, without strong bullish or bearish pressure.
