XRP News Today: XRP Needs 22% Correction for Buy Signal Says Analyst

Coin WorldSunday, Jun 1, 2025 1:50 pm ET
2min read

Daniel Liu, a prominent market analyst known by his alias VirtualBacon, has expressed a cautious stance on XRP, despite the overall optimism in the broader cryptocurrency market. Liu believes that XRP is currently lacking a key signal that would make it a compelling buy. In his May 30 video update, Liu discussed XRP’s recent underperformance and the ongoing consolidation phase, which he views as potentially constructive for the asset in the long term. However, he emphasized that he is waiting for a major confirmation before reentering the market.

Liu’s buy signal for XRP is contingent on a further 20% drop against Bitcoin. This scenario could unfold in two ways: either XRP falls while Bitcoin holds steady, or Bitcoin rallies while XRP remains flat. Both situations would push XRP into a strong value range, a mid-cycle pattern that Liu has observed before. He anticipates that XRP will resume outperforming Bitcoin but not until it undergoes another 22% correction. According to Liu, if Bitcoin stays steadily above $100,000 and XRP corrects 22% against the dollar, XRP could fall to around $1.85, which he identifies as his optimal entry point. Liu also noted that $1.85 is the lowest value he expects for XRP in the current cycle. He highlighted that XRP has already tested its demand zone seven times since December, each time rebounding strongly, making that zone increasingly reliable as a support level.

Liu also proposed an alternative path that could trigger the same XRP/BTC retracement. In this scenario, XRP would remain mostly flat around its current price, while Bitcoin would rally another 22% to reach new highs. The net result would still be a 22% decline in XRP’s ratio to Bitcoin. Liu argued that in such a scenario, many investors may lose confidence in XRP’s ability to outperform, a sentiment that often precedes significant upside. Only after this retracement—whether through a direct XRP correction or a Bitcoin-led divergence—would Liu consider XRP a strong buy relative to Bitcoin. Until then, he is remaining cautious.

While Liu’s strategy is conservative, other analysts remain firmly bullish on XRP. Researcher SMQKE recently predicted that XRP could surpass Ethereum in market value this year, implying a rally to at least $6. Analyst Egrag Crypto has outlined targets of $13 and even $22 for XRP, referencing a “bullish engulfing” pattern on the yearly chart. He added that he expects a strong “13th candle performance” for XRP during this market cycle. Although there is growing enthusiasm for XRP’s long-term potential, Daniel Liu’s current stance highlights the importance of timing and market positioning. His forecast suggests that while XRP may ultimately experience a powerful rally, a specific retracement—either through a direct price drop or a Bitcoin surge—is needed to confirm a low-risk, high-reward entry point. Until that condition is

, Liu is not ready to call XRP a buy.