XRP Buy Signal: Analyst Predicts Key Level for Entry

XRP buy signal discussions are heating up again as leading market analyst Daniel Liu, widely known as VirtualBacon, outlines a potentially pivotal moment for the cryptocurrency. In a fresh breakdown, Liu delves into XRP’s market behavior and pinpoints the conditions necessary to trigger his next major buying move.

After an impressive performance that saw XRP skyrocket 578% between November and January—from $0.50 to $3.39—many investors are hoping for a repeat of that rally. But the recent market activity tells a different story. XRP has undergone a 37% dip from its January high, a development Liu actually views as a healthy retracement for what he describes as a “very strong altcoin.”

Why a 22% Dip Could Be the Ideal Buying Window

In a recent analysis, Liu explains that price corrections of this nature are typical among top-tier cryptocurrencies after an initial surge in a bull market. He believes this downtrend against Bitcoin is nearing its end, but sees a final 22% correction as a key opportunity. This additional decline, he suggests, would push XRP into a high-value territory, acting as his signal to buy in large volumes.

Liu elaborates on two different paths where this 22% drop could materialize. First, if Bitcoin maintains its level above $100,000 while XRP falls an additional 22% against the US dollar, the XRP/BTC ratio would naturally retrace by the targeted margin. Under this situation, XRP would likely dip to around $1.85, potentially setting up another test of the significant $2 support threshold.

Interestingly, Liu highlights that XRP has consistently bounced back when revisiting its strong demand zone. According to his observations, XRP has tested this liquidity-heavy level seven times since December, demonstrating resilience each time. Liu asserts that $1.85 could be the lowest USD value for XRP in the current bull run.

An Alternative Path: XRP Consolidates as Bitcoin Surges

The second scenario laid out by Liu involves XRP maintaining its current trading range while Bitcoin continues to climb—specifically by 22%, setting a record high. In this arrangement, the XRP/BTC ratio again sees the necessary drop without XRP necessarily falling in dollar terms. Though this might stir investor doubt and apprehension, Liu draws a parallel with previous behavior seen in tokens like Solana and Ethereum. In both cases, prolonged consolidation led to powerful breakout moves that surprised even bearish holders.

While Liu refrains from making specific price projections for XRP’s next big move, he firmly states that only after witnessing this 22% retracement would he commit to purchasing and holding the coin against Bitcoin. He views this precise value shift as the clearest signal for an optimal long-term entry.

Experts Eye Explosive Gains for XRP

Despite his cautious stance, Liu is not alone in his optimism. Market veteran Peter Brandt has previously described XRP as “everyone’s favorite” investment, a sentiment echoed by multiple experts in the community. Notably, researcher SMQKE predicts XRP could outpace Ethereum in 2025, potentially sending prices above $6.

Meanwhile, analyst Egrag Crypto has put forth even more dramatic projections, forecasting a rise to $13 or even $22. Pointing to strong historical patterns such as a bullish engulfing candle on XRP’s yearly chart, Egrag sees a powerful follow-up year ahead for the digital asset.

Related: Expert Advice: Sell XRP If You’re Confused

In conclusion, while XRP hasn’t yet triggered Liu’s buying signal, the pieces may soon fall into place. Should the anticipated 22% move occur, it could represent the perfect storm for accumulation—setting the stage for the token’s next high-velocity rally. Investors are watching closely for that telltale market shift.