Analyst Outlines The Bull Case For XRP And Why Price Will Hit All-Time High Soon

XRP is now again to buying and selling simply above the $2 stage after an early January rally briefly carried its price action into the $2.40 vary. The pullback has so far been controlled, with value holding above former resistance that has now changed into short-term help.

A technical evaluation shared on X by crypto analyst Bird proposed that situations are actually proper for a well-recognized macro setup that has preceded XRP’s largest historic rallies. The focus of this outlook is on XRP’s response with the US greenback index and what its subsequent transfer may imply for the cryptocurrency.

How DXY Weakness Has Always Unlocked XRP Rallies

Bird’s evaluation is based on the US Dollar Index, or DXY, and its inverse relationship with XRP throughout vital phases. The chart accompanying his submit pointed to 3 earlier durations, round 2017, 2021, and 2024, the place sustained weak point within the greenback coincided with aggressive upside strikes in XRP. 

In every of these cycles, crimson candles on the DXY chart led to a lack of greenback power, whereas XRP responded with sturdy upward growth shortly after. This recurring sample signifies that XRP’s largest strikes are inclined to comply with macro shifts, not simply even occasions associated to XRP. When greenback dominance fades, capital at all times rotates into crypto belongings, and XRP has been one of many main beneficiaries of that transition.

Interestingly, the present setup exhibits that DXY has returned to an identical structural zone seen earlier than previous rollovers. As proven within the chart under, the DXY is now trending downwards.

US Dollar Index, XRPUSD. Source: @Bird_XRPL On X 

XRP To New All-Time Highs?

The first highlighted part captures the late-2017 to early-2018 cycle, when a weakening greenback backdrop lined up with XRP’s rally run into the cycle peak within the mid-$3 vary.

An analogous relationship appeared across the 2020-2021 window, the place greenback softness was adopted by XRP surging to $1.90 at its cycle prime. The newest was in H1 2025, which culminated in XRP reaching its present all-time high of $3.65 in July.

The vital context is why the present moment is a decision point. At the time of writing, the DXY is sitting round 99, and from right here it may possibly both flip decrease and begin printing crimson candles once more or catch a bid and print inexperienced.

If DXY begins printing crimson candles once more and rolls over, the sample Bird is pointing to suggests the macro backdrop turns into supportive for an additional sturdy XRP leg increased, which is why a brand new all-time high above $3.65 could come into view inside the subsequent few months. 

If DXY prints inexperienced and strengthens, that may be the other sign: it may possibly tighten liquidity situations and hold XRP’s value motion capped in consolidation round $2 earlier than any breakout try. Either approach, the greenback’s subsequent transfer will sign what comes subsequent.

Featured picture from Unsplash, chart from TradingView