Crypto analyst Steph has outlined three key factors that make now a great time to invest in XRP.
According to Steph, now may be an opportune moment “to go all in” on XRP. In his commentary, the analyst noted that the market is showing signs of a potential breakout. He provided insights into the market sentiment driving his strong bullish outlook for XRP.
XRP Imminent Breakout with Falling Wedge Pattern
First, Steph highlighted the current chart setup for XRP on the daily time frame. According to his analysis, XRP is trading within a falling wedge pattern, which is a typical bullish setup. He emphasized that a breakout is imminent as the price compresses between downward-sloping resistance and support.
The critical level to watch, according to Steph, is $2.53. If XRP closes a daily candle above this price, it would confirm a breakout to the upside, with a target around $3.38.
Notably, at press time, XRP is trading at $2.51, up 4% today. It has established an intraday high of $2.55 before retracing slightly below. Steph’s analysis suggests that all XRP needs to do is close the day above $2.53 for higher levels to follow.
Liquidation Heat Map Shows Short Squeeze Opportunity
Furthermore, Steph points out the significance of the liquidation heat map on Binance, one of the largest exchanges for XRP trading.
He noted that the majority of liquidity is currently in short positions, indicating that many traders are betting on lower prices.
With liquidity positioned above the current price, Steph believes that market makers will likely target this liquidity, potentially triggering a massive short squeeze. This could force short positions to cover, driving the price of XRP higher.
Crypto Fear and Greed Index Shows Extreme Fear
Another key factor Steph highlights is the Crypto Fear and Greed Index, which currently shows extreme fear at a level of 20. Historical data suggests that when the market is fearful, it often implies the bottom, or near the bottom, for crypto assets.
Notably, the current level of 20 is an improvement from the much lower score of 10 it saw last week. At that time, Bitcoin’s price dipped below $79K, and XRP also dropped below $2.
Meanwhile, the market is already rebounding, with Bitcoin above $92K at press time, while XRP is above $2.50. Despite this improvement, the market sentiment remains extremely cautious as participants fear getting burned.
However, analysts like Steph believe such conditions are ideal for buying. “Extreme fear always presents a good buying opportunity,” he says.
For XRP investors, he stressed the importance of capitalizing on the current price to position themselves for a potential rally as sentiment shifts. XRP has consistently been among the top performers during bull runs in recent times.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
