Cryptocurrency market commentator Steph recently shared analysis on X (formerly Twitter) predicting a significant price increase for XRP.
His video outlined several technical and fundamental factors that support the strong bullish outlook for altcoins. According to Steph, XRP could potentially reach $40, but advised viewers to approach this goal with caution.
Technical indicators point to a big breakout for XRP
In his analysis, Steph pointed out important technical indicators that hint at an impending breakout for XRP. He highlighted the symmetrical triangle pattern that has been forming on the XRP/USD chart since 2018. Several market analysts have identified this pattern.
XRP 1M Symmetrical Triangle | Steph
Notably, XRP is currently at the apex of this triangle. This indicates the point at which a breakout may occur. This setup is similar to the pattern the market witnessed in 2017, which led to a significant price increase for XRP. The rally peaked at a high of $3.31.
Steph believes that the price of XRP has been subject to restraint for years, especially in the wake of regulatory challenges, including ongoing litigation between Ripple and the US SEC. However, despite this restraint, he stressed that XRP could be poised for large price swings.
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Comparing XRP’s performance to Bitcoin (BTC), Steph pointed out that XRP is significantly undervalued relative to BTC. He recalled a time in 2021 when XRP outperformed Bitcoin by more than 460% within a few months. A similar or even more dramatic rise could occur soon, the analyst said.
XRPBTC 1M Chart | Steph
Market fundamentals remain strong
In addition to the technical charts, Steph highlighted some fundamental reasons to remain optimistic about the future of XRP.
He said major institutions, including banks, continue to partner with Ripple. These partnerships could demonstrate the potential role of XRP in the broader financial system, especially as CBDCs become more prominent.
One of the more bullish developments he mentioned was Canary Capital’s recent filing for an XRP exchange-traded fund (ETF). The move follows an earlier filing by Bitwise for a similar product, confirming the institution’s interest in XRP.
Additionally, Steph discussed the broader crypto market, noting that cryptocurrencies like XRP could benefit from macroeconomic factors.
He noted that as global liquidity increases and central banks move towards more accommodative monetary policies, demand for risk-on assets such as cryptocurrencies is likely to increase.
The weakening US dollar and declining Bitcoin foreign exchange reserves also indicate that major companies are positioning themselves for a bullish phase of the market.
A note on XRP price targets
Despite being confident that XRP could break out in the near future, Steph urged retail investors to be cautious with their price targets. In his analysis, he said that XRP’s $40 target is not guaranteed.
A more conservative target could be between $5 and $10, Steph said, although market conditions could lead to higher prices.
He advised investors to take into account the unpredictable nature of the market and book profits prematurely rather than waiting for an exact price target. Although he doesn’t expect XRP to reach $40 this year, he believes it could hit a new all-time high by the end of 2024.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
