Analyst Outlines The Bull Case For XRP And Why | Crypto News
XRP is now back to trading just above the $2 stage after an early January rally briefly carried its price motion into the $2.40 vary. The pullback has so far been managed, with price holding above former resistance that has now turned into short-term help.
A technical analysis shared on X by crypto analyst Bird proposed that circumstances are now proper for a acquainted 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 next transfer might imply for the cryptocurrency.
How DXY Weakness Has Always Unlocked XRP Rallies
Bird’s analysis is based on the US Dollar Index, or DXY, and its inverse relationship with XRP during important phases. The chart accompanying his post pointed to three earlier durations, around 2017, 2021, and 2024, where sustained weak point in the greenback coincided with aggressive upside strikes in XRP.Â
In each of those cycles, crimson candles on the DXY chart led to a loss of greenback strength, while XRP responded with strong upward enlargement shortly after. This recurring sample means that XRP’s largest strikes have a tendency to observe macro shifts, not just even occasions associated to XRP. When greenback dominance fades, capital always rotates into crypto property, and XRP has been one of the first beneficiaries of that transition.
Interestingly, the current setup exhibits that DXY has returned to a comparable structural zone seen before past rollovers. As shown in the chart below, the DXY is now trending downwards.
US Dollar Index, XRPUSD. Source: @Bird_XRPL On XÂ
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 in the mid-$3 vary.
An analogous relationship appeared around the 2020-2021 window, where greenback softness was adopted by XRP surging to $1.90 at its cycle top. The latest was in H1 2025, which culminated in XRP reaching its current all-time high of $3.65 in July.
The important context is why the current second is a choice level. At the time of writing, the DXY is sitting around 99, and from right here it could actually either flip decrease and start printing crimson candles again or catch a bid and print inexperienced.
If DXY begins printing crimson candles again and rolls over, the sample Bird is pointing to suggests the macro backdrop turns into supportive for another strong XRP leg larger, which is why a new all-time high above $3.65 might come into view within the next few months.Â
If DXY prints inexperienced and strengthens, that can be the alternative signal: it could actually tighten liquidity circumstances and keep XRP’s price motion capped in consolidation around $2 before any breakout attempt. Either means, the greenback’s next transfer will signal what comes next.
Featured image from Unsplash, chart from TradingView
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