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.

Amid the ongoing consolidation, XRP is showing signs of preparing for a major price surge, according to market analysts. 

One prominent analyst, EGRAG, believes the asset is currently in what he calls the “Kangaroo Phase,” a period of consolidation before a significant breakout. According to him, XRP is setting itself up for “the next big leap,” pointing to several reasons why he believes so.

XRP Setting up for Next Big Leap: Here’s Why

Notably, one of these reasons is XRP’s ability to hold above a key support trend level. This stability has been bolstered by a successful retest of the Bull Market Support Band. He believes this retest is another factor contributing to the idea that XRP is positioning itself for an uptrend.

Additionally, EGRAG also sees the asset consolidating above the Fibonacci 0.888 level, a zone that often serves as a launchpad for strong upward movements. Currently, this Fibonacci level aligns with the $2.3 mark, with XRP now trading above the region amid its surge to $2.51. He noted that this also supports the claim of an imminent upsurge.

Another major reason he highlighted is that XRP is also ranging within a macro consolidation zone, which is the Fibonacci 1.0 region, a level that currently rests between $2.30 and $3.37. 

In addition to this, XRP price is fluctuating between a zone he describes as noise, aligning with $2.00 to $3.40. As long as XRP remains within this level, there is no significant development in price action. 

According to him, all this positioning confirms the theory that XRP is on the verge of an explosive run. 

XRP Targets $27 to $222

Meanwhile, looking at potential future price action, EGRAG sees XRP’s next major breakout targeting levels between $8.50 and $13, based on Fibonacci extensions 1.272 and 1.414. However, his projection does not stop there. He also considers the Fibonacci 1.618 level, which points to a possible surge beyond $27. 

For historical context, the analyst refers to XRP’s 2017 bull run. For context, during that cycle, the asset initially reached the Fibonacci 1.618 level before entering a consolidation phase, then making another parabolic move toward the Fibonacci 2.236 extension. 

If history repeats, he believes XRP could rise anywhere between $27 and $222. Notably, this aligns with past performance and Fibonacci-based projections.  

EGRAG also addressed concerns about XRP’s market cap, a common argument among skeptics who doubt such high price targets. He dismissed these concerns, arguing that traditional market cap calculations don’t fully account for utility-driven assets like XRP.  

XRP Short-Term Price Action 

Meanwhile, another analyst, Dom, discussed XRP’s short-term price action. He has been closely monitoring the asset’s positioning relative to key volume-based technical indicators. 

Three days ago, he highlighted that XRP is trading above two major levels: the multi-month Value Area High (VAH) and the all-time high (ATH) VWAP. These levels are historically important and often dictate price movements.  

Dom noted that a retest of these important levels would be healthy for the asset. However, he also pointed out a major obstacle, as strong sell walls lie between $3.00 and $3.50. 

He believes breaking through this range will require significant bullish momentum, and he wouldn’t be surprised if XRP takes some time to consolidate and refuel before attempting to overcome this resistance.  

Notably, in his latest update, Dom reiterated that the key objective for bulls is to reclaim the orange VWAP bands, which he has been tracking for two months. This region is also aligned with the quarterly VWAP, adding to its significance. 

Over the last day, XRP’s price has stalled around this level, confirming its importance. According to Dom, the lower bound of the current trading range sits at $2.20, while these VWAPs form the upper boundary. At press time, XRP changes hands at $2.51, up 2.81% in the past 24 hours.