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4 November 2024
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Analyst Predicts XRP Could Surge to $14 Due to Increased Liquidity

Analysts suggest Ripple’s XRP may be on the verge of significant price movement. Analyst Steph, known as “StephIsCrypto,” predicts a rally fueled by increased global liquidity.

Steph's analysis identifies XRP's historical correlation with rising liquidity and technical patterns such as the descending channel and Bollinger Bands as key indicators for an upcoming price increase.

Currently, XRP is trading at $0.5052, reflecting a 0.5% rise in the past 24 hours and nearly 2% growth over the past week, according to Coingecko data.

XRP and Global Liquidity

Increased global liquidity typically supports XRP price increases. Steph notes that liquidity, or cash flow in the market, historically helps XRP maintain its price during previous cycles.

Steph anticipates that global liquidity will rise due to central bank policies, particularly potential actions from the Federal Reserve that could increase money supply and weaken fiat currencies, thereby creating more capital. He considers XRP a viable investment amid this liquidity surge.

Impact of the Weighted Global Liquidity Index

Steph's outlook on XRP also hinges on movements in the Weighted Global Liquidity Index (WGLI), which monitors the global money supply through central banks' balance sheets.

The WGLI serves as a predictor for price trends in riskier assets like XRP; typically, an upward trend in the index correlates with increases in crypto asset prices. Historical data shows that XRP price surges have followed WGLI increases.

Currently, there is a discrepancy between XRP’s price stability and the rising global liquidity. For Steph, this divergence signals bullish potential for XRP.

Bollinger Bands and Descending Channel Indicators

Steph highlights that the Bollinger Bands and Descending Channel patterns indicate favorable conditions for XRP. Since 2021, XRP has traded within a descending channel, characterized by multiple resistance levels and decreasing volumes.

He notes that the tightening of Bollinger Bands often precedes significant price action; for instance, similar compression occurred in 2017 before a price rally. If current trends continue, XRP could reach $14, representing a projected increase of 2,670%.

Featured image from Techopedia, chart from TradingView