XRP Final Countdown Has Started. Here’s the Significance

Market analyst Steph has indicated that the final countdown for a potential XRP price reversal is underway. In a recent update on X, he outlined key indicators suggesting that XRP could soon break to the upside after a prolonged period of bearish movement.

His analysis focused on historical price trends, the behavior of exponential moving average (EMA) ribbons, and the likelihood of a short squeeze contributing to a rally.

EMA Ribbon Analysis and Market Trend

Steph’s assessment emphasized the importance of EMA ribbons in identifying shifts in market momentum. These ribbons, which traders use to determine whether an asset is in a bullish or bearish phase, currently indicate that XRP remains in a bearish state. The token has traded below the EMA ribbons for 37 days, a pattern that has historically preceded strong price reversals.

He pointed out that in October 2024, XRP remained below the EMA ribbons for 35 days before experiencing a sharp rally. The cryptocurrency surged from approximately $0.50 to over $3 before entering its current correction phase. With XRP now surpassing the duration of its previous bearish stretch, Steph suggested that a breakout could be imminent.

Historical Trends Supporting a Reversal

Drawing comparisons to previous market cycles, Steph noted that XRP has historically seen significant price increases after extended periods below the EMA ribbons. He referenced two notable cases: the first In April 2024, when XRP remained under the ribbons for 90 days before rallying by 43%, and the second in August 2023, when the token stayed in bearish territory for 64 days before rising 47%.

Given these past trends, Steph proposed three possible scenarios. The worst-case scenario would see XRP spending 90 days below the EMA ribbons before reversing. A moderate case would align with the 64-day trend. However, he highlighted that XRP has rarely remained below the ribbons for just over 36 days, and with 37 days already elapsed, the likelihood of a breakout soon is increasing.

Key Price Level for Confirmation

Steph identified a critical price level that could signal the start of a rally. According to him, if XRP secures a daily close above $2.35, it could confirm a bullish breakout. He projected that this would likely lead to a minimum price increase of around 40%. However, he suggested that the rally could extend beyond this estimate, depending on market conditions.

Short Squeeze Potential Could Accelerate Price Surge

Another factor that could contribute to an XRP breakout is the high number of traders shorting the asset. Steph pointed out that funding rates remain extremely negative, meaning many traders are betting on further declines.

“This creates a lot of liquidity above us with very little below. Price typically targets the highest liquidity, so a massive short squeeze is likely to occur soon,” he explained.

A short squeeze occurs when traders betting against the asset are forced to buy back their positions, accelerating upward momentum. If this scenario unfolds, it could significantly amplify any price recovery that XRP experiences.

Steph’s analysis suggests that XRP could be nearing the end of its bearish phase, with historical patterns, technical indicators, and liquidity conditions all pointing toward a potential breakout.

While the exact timeline remains uncertain, he emphasized that XRP’s recent trading behavior closely mirrors past situations that led to major price rallies. Traders will now be watching key resistance levels, particularly $2.35, for confirmation of a reversal.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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