A bold prediction that has captured the attention of the cryptocurrency community, leading market analyst Steph has advised investors to buy XRP now, anticipating a potential surge to $40. This forecast, shared via X (formerly Twitter), is supported by several bullish technical indicators and broader market conditions. Here’s an in-depth look at why XRP might be on the brink of a significant breakout.

Bullish Technical Patterns Signal a Strong Uptrend

Steph’s analysis is anchored in the observation of bullish technical patterns on XRP’s charts. On the daily chart, Steph identified an inverted Head and Shoulders formation. This pattern is often seen as a precursor to a bullish trend reversal. For the breakout to be confirmed, XRP needs to close above the neckline of the pattern, which is currently around $0.65.

At present, XRP is trading at approximately $0.538, reflecting a modest 1% increase over the past 24 hours. Steph suggests that a successful move above the $0.65 level could set the stage for a significant rally. The next technical target, if the pattern plays out as expected, could be as high as $1.11, representing a 106.31% increase from current levels.

Monthly Chart Indicates Even Greater Potential

Steph’s optimism extends beyond short-term movements. On the monthly chart, XRP is consolidating within a larger symmetrical triangle pattern. According to Steph, a breakout from this pattern could propel XRP to an astonishing $40. Achieving this target would mean a remarkable 7,334% increase from XRP’s current value.

While Steph acknowledges that the $40 target is highly ambitious, he stresses that it serves as a “rough guideline” for potential future movements. His confidence is based on the pattern’s historical success in forecasting substantial price increases.

Contrasting Predictions and Broader Market Sentiment

Steph’s projection is not without its challengers. In July, analyst Heikin Ashi put forward an even more audacious prediction, suggesting that XRP could experience a monumental bull run, potentially reaching $305. Ashi’s analysis is based on monthly candlestick patterns that mirror past trends before major price surges. Despite this extreme forecast, many in the analyst community remain skeptical about such high projections.

However, the current market sentiment adds weight to Steph’s analysis. The Crypto Fear and Greed Index, which measures retail investor sentiment, currently shows a reading of 33, indicating a state of fear. Steph interprets this as a potential buying opportunity, suggesting that “smart money typically buys into fear.”

Anticipated Market Volatility and Federal Reserve Influence

Another factor influencing XRP’s potential rise is broader market conditions. The upcoming Federal Reserve meeting on September 18 is expected to introduce additional volatility into the market. Analysts, including Steph, speculate that a potential interest rate cut could flash a broader cryptocurrency rally. This mirrors the 2020 scenario, where rate cuts contributed to a significant bull run, propelling Bitcoin and other altcoins to new highs.

Conclusion

Steph’s call to buy XRP before it potentially reaches $40 is grounded in both technical analysis and market sentiment. With key bullish patterns on the daily and monthly charts and favorable market conditions, XRP could be on the verge of a significant breakout. While the $40 target remains ambitious, the current technical indicators and market dynamics suggest a promising outlook for the cryptocurrency.