XRP has returned to trading just above $2 after a rally in early January briefly pushed its price near $2.40. The pullback has remained orderly, with the price holding above a former resistance level that has now turned into short-term support.
A crypto analyst known as Bird recently shared a technical analysis on X, suggesting that conditions are aligning for a familiar macro setup that has historically preceded XRP’s biggest rallies. This outlook focuses on XRP’s relationship with the U.S. dollar index (DXY) and what the dollar’s next move could mean for the cryptocurrency.
Bird’s analysis highlights an inverse relationship between the DXY and XRP during key market phases. The accompanying chart points to three previous periods—around 2017, 2021, and 2024—where sustained dollar weakness coincided with strong upward moves in XRP. In each case, a decline in the DXY (marked by red candles) was followed by a significant rally in XRP.
This pattern suggests XRP’s largest price surges often follow broader macroeconomic shifts rather than just asset-specific news. When the dollar weakens, capital tends to flow into cryptocurrencies, and XRP has historically been a major beneficiary of this rotation.
Currently, the DXY has retreated to a structural zone similar to where it was before previous downturns, as shown in the chart below, and is now trending downward.
The first highlighted period was in late 2017 to early 2018, when dollar weakness aligned with XRP’s rally to a cycle peak above $3. A similar dynamic occurred around 2020–2021, with dollar softness preceding XRP’s surge to $1.90. The most recent example was in the first half of 2025, which led to XRP reaching its current all-time high of $3.65 in July.
The key question now is what happens next. At the time of writing, the DXY is hovering around 99. From here, it could either decline further (printing red candles) or rebound (printing green).
If the DXY turns lower and resumes its downtrend, the historical pattern suggests the macro environment could support another strong upward leg for XRP, potentially pushing it to a new all-time high above $3.65 in the coming months.
Conversely, if the DXY strengthens and moves higher, it could signal tighter liquidity conditions, likely keeping XRP’s price consolidating around $2 and delaying any breakout.
In either case, the dollar’s next move is expected to provide a clear signal for XRP’s near-term direction.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Analyst Explains Why XRP Could Reach a New AllTime High designed to cover a range of user knowledge levels
Beginner General Questions
1 What does AllTime High mean
An AllTime High is the highest price an asset like XRP has ever reached since it began trading For XRP its current ATH is around 384 set in January 2018
2 Why is this analyst so bullish on XRP now
Analysts are often bullish after a major positive catalyst The most common reason cited recently is the conclusion of the SEC vs Ripple lawsuit which provided muchneeded regulatory clarity for XRP in the US removing a huge cloud of uncertainty
3 Is it guaranteed that XRP will hit a new ATH
No it is not guaranteed Analyst predictions are educated opinions not facts The cryptocurrency market is highly volatile and influenced by many unpredictable factors like overall market sentiment new regulations and global economics
4 What is XRP used for
XRP is primarily designed as a digital asset for fast lowcost international payments and currency exchanges It acts as a bridge currency for financial institutions using Ripples technology to settle crossborder transactions
5 How high could XRP realistically go
Predictions vary wildly Some analysts give specific price targets but these are speculative They often depend on widespread adoption by banks overall crypto market growth and positive developments for Ripple
Advanced MarketFocused Questions
6 What specific factors from the lawsuit are driving this optimism
The court ruled that XRP itself is not a security when sold to the general public on exchanges This allows US exchanges to relist it increases institutional confidence and lets Ripple partner with US companies without the same legal fear
7 Besides the lawsuit what other catalysts could push XRP higher
Key catalysts include
Increased OnDemand Liquidity Adoption More financial institutions using XRP for real transactions
Ripples IPO Rumors Speculation that Ripple might go public which could boost attention and credibility