As the cryptocurrency market continues to grow even more an analyst has provided an exciting new prediction for XRP price. Claiming that the token is poised to trade above the $6 level by the end of year. This can be due to increased global liquidity.
Correlation Between Global Liquidity and XRP Gains
Analyst Steph’s forecast is grounded in a careful assessment of how XRP has performed during the periods of global liquidity expansion.
From his analysis, there are two clear trends, 2017/2018 and 2020/2021, during which XRP rose in value. In a recent update posted on X, Steph included a chart showing how XRP has tended to follow the periods of liquidity injection into the market.
For example, in the 2017/2018 cycle, XRP hit its all-time high. The same pattern was repeated in the following cycle, and the price approached $2 in 2021.
However, as noted in Steph’s projections, there is a certain degree of skepticism among market players. There are some inconsistencies in the XRP previous predictions made by different critics which they have pointed out.
Additionally, Steph notes what could be more important is the current economic environment and liquidity conditions. It could resemble those of the past successful periods paving the way to another great price appreciation.
In his estimation, if the current price of $0.5058 is to be believed, XRP could rise by more than 1,086% to go above $6.
Analyst Eye End of Bull Season
Steph made his prediction at a time when the ongoing bull market is expected to come to an end. Some analysts believe that this phase may lead to significant inflows of investments in high utility assets such as XRP. This factor, coupled with the anticipated rise in global liquidity, makes XRP to be well placed for significant growth.
Also, the 21Shares XRP ETF filing has positively impacted XRP price. The asset’s price has shown some recovery, reflecting on the improving market perception due to possible expansion of investor access. Increased liquidity and visibility through the ETF is a key driver to this price change.
Moreover, the MACD indicator on the XRP price chart is also giving a positive crossover. A bullish croosover appears in the signal line which is a bullish sign. The MACD histogram, which is the difference between the MACD line and the signal line is also rising.
This means that the momentum behind XRP’s price is increasing. This technical pattern indicates renewed buying interest among traders and may pave the way for more upward movement.
More so, a recent XRP analysis has shown that the XRPL’s most recent Oracle pricing update may affect market conditions to a large extent. This upgrade is proposed to improve the price information quality thereby creating a strong potential for the XRP to rally.
XRP Price’s Fate
With these improvements, investor interest is still high and may open the way for the achievement of the $0.8 level.
At the time of writing, XRP is trading at $0.5089, up by 1.95% in the last one day. The trading volume for the same period has increased by 5.37% to $914.89 million and shows that the trading move and investor interest in the cryptocurrency has gone up.
