The crypto world continues to watch XRP closely as it navigates a critical phase in its current market cycle. After a spectacular rally from November to January—where the fourth-largest cryptocurrency surged 578%, climbing from $0.50 to $3.39—investors are eager for the next major breakout. But according to a top-tier market analyst, the green light for a new bullish surge hasn’t quite flashed yet.
Daniel Liu, the well-known crypto analyst behind VirtualBacon, recently shared insights suggesting that while XRP isn’t in buy territory just yet, a powerful buy signal is forming—one that could trigger a massive upward move once confirmed.
Why XRP’s Pullback Is Actually Bullish
Despite the 37% correction from its January peak, Liu views this pullback as a healthy and necessary development. He describes XRP as a “very strong altcoin” and emphasizes that assets with explosive early-bull-run performance often experience mid-cycle retracements—especially against Bitcoin (BTC).
This period of consolidation isn’t a sign of weakness; rather, it's part of a broader accumulation pattern that historically sets the stage for stronger rallies down the line. Liu believes that once a key technical condition is met, XRP could be poised for its next leg up.
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The 22% Retracement: A Crucial Buy Signal
Liu’s primary focus is on a 22% retracement in the XRP/BTC trading pair—a metric he sees as the definitive confirmation for entering long positions. This ratio-based approach removes dollar volatility from the equation and provides a clearer picture of XRP’s relative strength.
He outlines two potential scenarios that could lead to this 22% drop:
Scenario 1: XRP Drops 22% Against USD While BTC Holds Above $100K
In this case, Bitcoin maintains its position above $100,000, acting as a stable anchor. Meanwhile, XRP corrects by roughly 22% against the U.S. dollar, bringing its price down to around **$1.85**.
While this may sound bearish at first glance, Liu sees it as an opportunity. A drop to $1.85 would likely retest the **$2 support level, which has proven resilient multiple times since December. In fact, XRP has bounced off this demand zone seven times** in recent months—a pattern that reinforces its significance.
“If we see XRP dip to $1.85, that’s actually the lowest expected target for this bull market,” Liu explains. “It’s not a red flag—it’s a value zone forming.”
Scenario 2: Bitcoin Surges 22% While XRP Consolidates
Alternatively, the 22% retracement in the XRP/BTC ratio could occur if Bitcoin rallies another 22% to fresh all-time highs while XRP remains range-bound.
This scenario plays out through relative underperformance—even if XRP holds steady in dollar terms, a strong BTC move would weaken the pair’s ratio. Historically, such periods create skepticism among holders, leading to temporary capitulation.
But Liu warns against mistaking stagnation for failure. “We saw similar doubt around Solana and Ethereum months ago,” he notes. “And look what happened next—face-melting rallies that caught everyone off guard.”
👉 See how smart traders position before explosive altcoin moves
The Demand Zone That Keeps Rejecting Downside
One of the most compelling aspects of XRP’s current structure is its repeated defense of a key liquidity-rich demand zone near $1.80–$2.00. Each time the price has approached this range, strong buying pressure has emerged, turning it into what Liu calls a “fortress.”
This repeated rejection suggests deep institutional or whale-level interest at these levels. For retail investors, it means increased confidence that major downside risks are limited—assuming broader market conditions remain stable.
What Happens After the Buy Signal Triggers?
Once the 22% retracement in XRP/BTC is confirmed, Liu plans to initiate long positions and hold through the anticipated next phase of growth. While he doesn’t specify exact price targets, other experts in the space have made bold predictions.
Bullish Price Targets From Other Analysts
- SMQKE, a respected XRP community researcher, believes XRP could dethrone Ethereum as the leading altcoin in 2025—a move that would likely send its price soaring past $6.
- Meanwhile, analyst Egrag Crypto points to a rare bullish engulfing pattern on XRP’s yearly chart. He forecasts a powerful performance from the upcoming 13th candlestick cycle, potentially pushing XRP toward $13 or even $22 in the medium to long term.
These targets may seem ambitious, but they’re rooted in technical patterns and historical cycles—particularly when considering XRP’s track record during favorable market phases.
Frequently Asked Questions (FAQ)
Q: Is XRP a good investment right now?
A: According to Daniel Liu, it's not yet a confirmed buy. The ideal entry point hinges on a 22% retracement in the XRP/BTC ratio, which hasn't occurred. Until then, patience is advised.
Q: What is the key buy signal for XRP?
A: The major buy signal is a 22% drop in the XRP/BTC trading pair. This can happen either through an XRP price decline or a significant Bitcoin rally while XRP holds steady.
Q: How low could XRP go before rebounding?
A: The lowest expected target in this bull cycle is around $1.85. This level aligns with a strong historical support zone that has defended seven times since December.
Q: Could XRP surpass Ethereum in 2025?
A: Some analysts like SMQKE believe so, citing growing adoption of Ripple’s payment solutions and increasing network utility as catalysts.
Q: What technical patterns support higher prices for XRP?
A: Egrag Crypto highlights a bullish engulfing formation on the yearly chart—an extremely rare and powerful signal that often precedes massive rallies.
Q: Should I sell my XRP if it doesn’t rise soon?
A: Not necessarily. Consolidation phases are normal in bull markets. If you're investing long-term and believe in Ripple’s fundamentals, holding through volatility may be more rewarding than timing exits.
👉 Learn how top traders use technical signals to time their entries
Final Thoughts: Patience Before the Explosion
While many XRP fans are eager for another explosive rally, the data suggests that the most strategic move right now is waiting for confirmation. The 22% retracement in XRP/BTC serves as a high-probability signal that could separate impulsive trades from disciplined ones.
By focusing on ratio analysis rather than dollar price alone, investors gain a clearer understanding of XRP’s true momentum within the broader crypto market. And with strong support levels holding firm and multiple bullish targets on the horizon, the foundation for a major move appears to be quietly building.
For those watching closely, the next few weeks could reveal whether XRP is setting up for another historic surge—or needs more time to mature its base.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed are based on market analysis and may include personal opinions. Always conduct your own research before making investment decisions.