Analyst Predicts Bullish Future for XRP, Foreseeing Potential All-Time Highs Soon

XRP has recently returned to trading just above the $2 mark after an initial rally in early January took its price briefly up to $2.40. This pullback has remained controlled, with XRP maintaining its position above previous resistance levels that have now transformed into short-term support.

Key Takeaways:

XRP has recently stabilized above $2 after a rally to $2.40.
Analyst Bird asserts that current market conditions are favorable for a significant surge in XRP prices, linked to the US Dollar Index (DXY).
Historical data indicates that weakness in the DXY often precedes strong XRP rallies.
The DXY’s movement—either downward or upward—will be pivotal in determining the future price trajectory of XRP.

In a technical analysis shared on X by crypto analyst Bird, it was suggested that the current conditions are ripe for a macro setup that has historically led to XRP’s largest price runs. This analysis emphasizes XRP’s interaction with the US Dollar Index (DXY) and what its next movements may signify for the cryptocurrency.

Understanding the Link Between DXY Weakness and XRP Rallies

Bird’s analysis centers on the US Dollar Index, or DXY, noting its inverse relationship with XRP during significant market phases. The accompanying chart highlighted three critical periods—2017, 2021, and 2024—where prolonged weakness in the dollar was followed by substantial price increases in XRP.

During each of these cycles, a series of red candles on the DXY chart indicated a decline in dollar strength, which was met with notable upward movements in XRP shortly thereafter. This recurring trend suggests that XRP's most significant price actions often align with broader macroeconomic shifts rather than specific XRP-related events. As the dominance of the dollar wanes, investments typically shift towards cryptocurrency assets, with XRP being a major beneficiary of this transition.

Currently, the setup indicates that the DXY has returned to a similar structural zone observed before previous downturns, and the DXY is now trending downward.

US Dollar Index, XRPUSD. Source: @Bird_XRPL on X

Could XRP Reach New All-Time Highs?

The first notable phase identified took place between late 2017 and early 2018, when a weakening dollar environment coincided with XRP’s remarkable rise to nearly $3.

A comparable trend occurred in the 2020-2021 timeframe, where dollar weakness preceded XRP reaching $1.90 at its peak. The latest phase was in the first half of 2025, leading to XRP hitting its current all-time high of $3.65 in July.

XRPUSD currently trading at $2.09. Chart: TradingView

The current moment is critical, as the DXY hovers around 99. From this point, it could either continue downward, generating further red candles, or pick up activity and show green.

If the DXY produces more red candles and begins to roll over, the pattern suggested by Bird indicates that the macro environment may support another significant upward movement for XRP, possibly bringing a new all-time high above $3.65 into consideration in the coming months.

Conversely, if the DXY moves upward into green territory, this could dampen liquidity conditions and keep XRP’s price within a consolidation phase around $2 before any breakout attempts. Ultimately, the dollar’s next direction will be crucial for understanding XRP's impending movements.