JAKARTA XRP crypto assets are again in the spotlight of investors. Crypto analyst, wary IsCrypto (@Steph_iscrypto), recently made an interesting prediction through X's upload. He assessed that XRP has the potential to experience a significant price spike in the near future. This prediction is based on an in-depth analysis of the correlation between XRP and the global liquidity spike.
As is known, global liquidity refers to the amount of money circulating in the world financial market. As liquidity increases, it is usually followed by rising price of risky assets, including cryptocurrencies such as XRP. How come IsCrypto sees a strong historical pattern between increasing global liquidity and soaring price of XRP. Every time a world central bank, such as the US Federal Reserve, pumps more money into the system, the price of XRP tends to follow a rising trend.
XRP has a very close relationship with global liquidity, said kaly IsCrypto in its analysis, quoted by NewsBTC. When liquidity increases, investors have more money to invest in, including in the cryptocurrency market. This creates higher demand and encourages prices to rise.
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Global Liquidity Index
To strengthen his argument,efend IsCrypto refers to the Weighted Global Liquidity Index (WGLI). This index tracks the world's money supply in real-time and is considered a good indicator for measuring market sentiment. According to this analyst, whenever WGLI shows an increase, the price of XRP usually follows the same trend.
"Historical data shows a very strong correlation between WGLI and the price of XRP," added kaly IsCrypto. When WGLI goes up, the price of XRP almost always goes up. This indicates that there is a clear causal-effect relationship between the two.
Currently, the price of XRP is still relatively stable, trading at the level of Rp8,057 based on Coingecko data on November 4, 2024. Predictions for price increases from badminton IsCrypto certainly attract investors. Although quite convincing, keep in mind that the cryptocurrency market is very volatile and influenced by various factors, ranging from government regulations to market sentiment.
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