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- XRP is in the spotlight as market expert teases reasons to buy the coin.
- Onchain indicators and the Binance Liquidation heatmap are among the reasons highlighted for the purchase.
XRP, the native token linked with Ripple Labs, is gaining momentum amid a broader market rally. Considering this rally and other factors, crypto analyst Steph on X predicted more bullish outcomes for XRP.
In an X post, Steph released a video spotlighting three reasons investors should begin accumulating XRP: “XRP: 3 REASONS TO GO ALL IN NOW.”
Potential XRP Breakout from Falling Wedge
Firstly, the expert pointed out that XRP trades within a falling wedge pattern. For clarity, a falling wedge usually appears on the charts during a downtrend, indicating a potential upward price reversal.
In his analysis, Steph stated that XRP’s clear breakout from the falling wedge suggests the start of a new uptrend. The analyst perceives an imminent breakout as the price of XRP squeezes between downward-sloping resistance and support.
According to Steph, the critical level to watch is $2.53. He predicted that XRP could reach around $3.38 if it closes a daily candle above this price, confirming a breakout to the upside.
Intriguingly, XRP has moved beyond $2.53, trading at $2.55 as of this writing. This move follows a daily surge of over 3%. Now, investors are watching to see if Steph’s prediction of XRP reaching $3.38 will come true.
Liquidation Heatmap on Binance
Steph further highlighted the importance of the liquidation heatmap on Binance, one of the biggest exchanges for XRP trading. He highlighted that the majority of XRP liquidity comes from short sellers. This means that many traders are betting on lower XRP prices.
The analyst believes market makers will likely target this liquidity, potentially triggering a massive short squeeze. This could compel short positions to cover, pushing the price of XRP up.
Crypto Fear and Greed Index at Extreme Fear
Finally, Steph spotlighted the Fear and Greed Index as the third key factor that creates a huge buying opportunity. The Index is currently at 20, showing Extreme Fear. As detailed in our last news piece, Extreme Fear often implies the bottom, or near the bottom, for cryptocurrencies.
Meanwhile, the current 20 level is an improvement from the much lower score recorded last week. As reviewed in our recent publication, the Fear and Greed Index hit 10 following a massive market sell-off. At the time, Bitcoin and XRP prices dropped below $79 and $2, respectively.
However, the market is already rebounding. Bitcoin is now traded at $91,327, up 2.7% from the previous day. Likewise, XRP has surged over 3% to $2.55.
Despite this improvement, the market sentiment remains extremely cautious as participants fear losing their funds. Analysts like Steph, however, think these circumstances are perfect for accumulating XRP. He advised investors to capitalize on the current price to position themselves for a potential rally as sentiment shifts.
