- EGRAG Crypto suggests that XRP typically lags behind liquidity expansions by 110 days, hinting at a potential rally in the coming months.
- Using technical indicators, EGRAG points to the 1.618 Fibonacci extension level at $6.569 as a possible target, representing a significant increase from XRP’s current price of $1.76.
Prominent crypto strategist EGRAG CRYPTO has warned XRP investors that there is a big bullish move on the cards for the token. His recent analysis on X links XRP price potential to a macroeconomic trend wherein global liquidity shifts as tracked by the M2 money supply.
XRP Price Boom Amid Shifting Global Trends
EGRAG highlighted a historical relationship between liquidity expansion and XRP price activity. Further, he used a model that offsets the M2 money supply curve by 110 days to match XRP’s lagged response. In his analysis, he plots two main lines on the XRP/USDT chart: XRP price in blue and the M2 money supply in green.
Meanwhile, the overlay shows that XRP often lags behind such liquidity movements by a time delay, which could mean the current liquidity uptick has yet to create a strong rally. “XRP – The Global liquidity Indicator was telling us that the next 110 days is bullish,” he wrote. He added, “Choppy in the meantime, but it will be #Bullish for a BlowoffTop, and then the music will stop.”
EGRAG noted that while short-term price behavior may be volatile, there is a nice separation to the upside. He wrote that global liquidity is on the horizon, which in turn means a positive macroeconomic expansion leads to positive digital asset momentum.
His breakdown also spotlights one of the key technical indicators, the 1.618 Fibonacci extension level at around $6.569. The chart is clearly showing this target, which is very prominent and could be a new all time high if XRP mirrors previous cycles. XRP was trading at around $1.76 as of April 7, so the projection would be a considerable increase in value.
Major Caution For Investors
Despite the optimism, EGRAG cautions investors to be cautious. “The next Run make sure to take profits. Learn ur lesson,” he urged as he pointing out the risk of a rapid price reversal once a peak is hit. A blow-off top is when price increases quickly, sharply, and suddenly, sometimes continuing to increase for a bit, and then plunges.
The XRP price chart also includes a visual indicator labeled “M2 Peak” that seems to indicate a turnaround in the expansion of liquidity. The crypto analyst suggests that XRP often trails this peak. This reinforces the idea that that the Ripple token functions as a lagging indicator of global money supply trends.
The model predicts that the bullish phase could last 110 days from now and that the biggest moves will occur around late July into August. However, the analyst stresses the importance of timing and strategy as market behavior could be unpredictable in the short term.
