A recent XRP analysis from a notable analyst highlights the necessary XRP buy signal, which might be the catalyst needed for XRP’s next bullish surge to new highs.
XRP enthusiasts are yearning for a repeat of the November-January rally, which made the asset one of the hottest in the crypto market. The fourth-largest cryptocurrency by market cap grew 578% during the three months, rising from 50 cents to $3.39.
Meanwhile, according to an X analysis from Daniel Liu, the prominent market watcher behind VirtualBacon, the recent sideways trend could be part of a broader bullish picture. He highlighted why this was necessary and the new signal for the next upsurge in his May 30 video commentary.
Analyst Waits on Bullish XRP Confirmation
Liu disclosed that XRP’s 37% drawdown from its January peak price is a healthy trend for the “very strong altcoin.” He highlighted that, typically, high-caliber coins that have experienced their first explosive run earlier in the bull cycle tend to retrace against Bitcoin midway.
However, the market watcher noted that the trend would soon cease, and XRP would make its comeback against Bitcoin, but only after another 22% correction. He identified the expected downside, which would place XRP’s price in a strong value range, as his buy signal and shared two ways the asset can achieve this.
First, the XRP/BTC ratio chart will retrace 22% if Bitcoin stays steadily above $100,000 and XRP corrects 22% against the dollar. In this scenario, Liu indicates that XRP would likely recede further to $1.85, potentially triggering another retest of the crucial $2 support level.
Interestingly, the analyst emphasized XRP’s earlier retest of the demand zone, which is becoming a fortress. The XRPL native token has tested the liquidity-packed level seven times since December and has rebounded extensively at each revisit. Remarkably, he stressed that the potential drop to $1.85 would be XRP’s lowest USD target for this bull market.
Second Scenario for 22% XRP/BTC Retracement
Meanwhile, the prominent commentator shared another way XRP’s ratio to Bitcoin could drop by 22%. This scenario would see XRP continue to consolidate around its current price, while Bitcoin puts in another 22% rally to a new all-time high.
Liu noted that this would not just put XRP in a strong value range but also raise doubts among holders over the viability of their bag pumping. He mentioned that market users took a similar position against Solana and Ethereum a few months back, only for the assets to stun them with face-melting rallies.
According to the analyst, he would only then buy and hold XRP against Bitcoin for its next explosive run. However, he did not specifically mention XRP’s target for its second round of price explosion.
Bullish Targets for XRP
Nonetheless, several bullish targets exist for XRP, an asset that market expert Peter Brandt described as “everyone’s favorite.” For context, prominent XRP community researcher SMQKE predicted that XRP would dethrone altcoin leader Ethereum this year, an event that would see the token rally to at least $6.
Moreover, expert Egrag Crypto is growing increasingly confident that XRP will rally to $13 or $22. He cited a bullish engulfing on XRP’s yearly chart and expects a strong 13th candle performance for the asset.
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.
