Several analysts say Ripple’s XRP is gearing up for explosive price action. Steph, an analyst who goes by the username “StephIsCrypto”, offers a bold, positive outlook for XRP, saying that a significant price raise is on the way thanks to increased global liquidity.

In the published analysis, Steph highlighted the token’s historical association with increased liquidity and structural patterns such as a descending channel and Bollinger Bands. According to Steph, these are the main factors determining success XRP soon for a price raise.

At the time of writing, XRP was trading at $0.5052, up 0.5% over the past 24 hours, but continued to gain almost 2% over the past week, according to Coingecko data.

XRP and its relationship to global liquidity

Higher global liquidity often favors Ripple’s XRP, fueling price gains. According to Steph’s analysis, token liquidity, or available cash flow in the market, has traditionally helped XRP sustain price action in previous cycles.

TO BUY #XRP BEFORE IT GOES TO $14.00!!! pic.twitter.com/e8wY3UVq11

— STEPH IS CRYPTO (@Steph_iscrypto) November 3, 2024

Steph is now looking at the same trajectory, with global liquidity rising thanks to favorable central bank policies. He cites a possible move by the Federal Reserve to put additional money into circulation, thereby weakening fiat currencies but creating more capital. Steph sees the token as a great investment when liquidity surges.

As the weighted global liquidity index increases, risky assets raise

Steph’s work on the topic XRP it is also based on the movement of the Weighted Global Liquidity Index (WGLI). WGLI tracks the world’s money supply by analyzing central bank balance sheets and other significant financial reports.

The analyst says the index reflects possible price movements of risky assets such as XRP. If the index tends to rise, the crypto assets also tend to rise. According to the analyst, each raise in the price of XRP followed immediately after an raise in the index.

There is currently a discrepancy between the price of XRP and the index. While there is an raise in global liquidity, the price of XRP appears stable. But for Steph, this setup is a bullish signal.

Bollinger Bands are tightening and the descending channel is favoring SRP

According to Steph, even Bollinger Bands and Descending Channel have positioned the altcoin for favorable growth. As of 2021, XRP is trading in a descending channel, with multiple resistance points and volumes withering.

He emphasized that Bollinger Bands for a given asset are compressed. If the bands tighten on cryptocurrencies, it suggests likely price action. For example, XRP’s Bollinger Bands compressed in 2017, followed by an raise in asset prices.

If the analysis and data trends prove correct, the analyst expects the price of XRP to be $14, which will translate into an raise of 2,670%.

Featured image from Techopedia, chart from TradingView