XRP saw strong trading activity on Wednesday. It had climbed 6.31% over the past 24 hours to reach $0.76 amid a broad market rally spurred by Bitcoin’s record-breaking surge to $75,000.
This bullish momentum keyed up the XRP community, with 84% of participants expressing confidence in continued growth. The price spike also drove a remarkable 76.26% increase in XRP’s 24-hour trading volume, reaching $6.75 billion and signaling a surge in market interest.
That said, analysts point to a surge in liquidity flowing into altcoins as Bitcoin reaches new heights, sparking rallies across the crypto market. Prominent crypto analyst Egrag Crypto recently shared his optimistic take on XRP, highlighting a potential breakout on X.
“Liquidity on the Rise BTC is heating up, and liquidity is flowing,” Egrag tweeted, suggesting that a decline in Bitcoin’s dominance could lead to liquidity rotating toward altcoins. This shift, he noted, might propel XRP toward a substantial gain, possibly increasing by 10X-20X and potentially even moving into double-digit price territory.
Despite the optimistic outlook, Egrag cautioned that XRP is at a crucial juncture around the $0.41 level. He highlighted that the price remains trapped in a significant consolidation phase, which means the price could break out in either direction during this cycle.
Adding to the bullish outlook, analyst Steph has Crypto identified a unique price pattern for XRP tied to U.S. election cycles. XRP’s price has exhibited a symmetrical triangle formation over the last three election cycles, with significant price compression since 2016. According to him, this tightening trend hints that XRP could be primed for a major breakout as the 2024 election season progresses.
“XRP’s price pattern is aligning with historic election cycles, signaling a potential breakout. With price compression reaching critical levels, a major move could be on the horizon,” he stated.
Moreover, like Egrag, Steph believes that global liquidity conditions, similar to those fueling major rallies in 2017 and 2021, could drive a significant breakout for XRP, potentially leading to an explosive phase that could last through December 2025.
From a technical perspective, XRP is facing crucial resistance at $0.8. A successful break above this level could pave the way for a rally toward $1 and possibly even push XRP toward the $3 mark, signaling a stronger bullish trend. On the other hand, if XRP fails to breach $0.8, a pullback could occur, with initial support at $0.71. A drop below this level could trigger further downside risks, extending the decline further.
In this high-stakes environment, all eyes are on whether XRP can maintain its momentum and break free from consolidation, setting the stage for a historic move in the upcoming months.
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