XRP price spikes in 2018, 2021, and 2024 directly followed steep drops in the U.S. Dollar Index, supporting a strong historical pattern.
The current DXY decline toward the 88 level could repeat previous XRP rallies, according to analysts tracking technical indicators.
XRP sentiment strengthens amid progress in U.S. stablecoin laws, ETF speculation, and reduced legal uncertainty following Ripple’s SEC settlement.
Versan Aljarrah, Co-founder of Black Swan Capitalist, has highlighted a recurring market pattern that could indicate an imminent XRP breakout. He pointed to the historical relationship between the U.S. Dollar Index (DXY) and XRP’s price action. According to Aljarrah, previous sharp drops in the DXY have directly aligned with major surges in XRP’s price.
His study indicated that, in early 2018, mid-2021, and late 2024, XRP had a bull run when the DXY dropped greatly. In the current bull market, DXY declined to 88, whereas XRP has reached its maximum of $3.80.
In the middle of 2021, the same DXY decline to 89 was achieved by XRP, reaching $1.96. Most recently, a slump in the fall of 2024 increased by 600 percent, making XRP reach $3.40 in January 2025.
Current Market Dynamics Fuel Further Optimism
At present, the DXY is again showing signs of decline. Aljarrah suggests that a continued slide toward the 88 level could once again act as a catalyst for XRP’s price growth. This technical outlook strengthens the broader bullish sentiment around the asset as the crypto market awaits another significant move.
Additional crypto analysts are aligning with this perspective. Ali Martinez has forecasted a possible surge in XRP’s price to $6, while analyst CasiTrades has identified Fibonacci retracement levels that suggest further upside is possible. These signals are gaining attention amid XRP’s recent technical movements and market positioning.
Stablecoin Legislation and XRP ETF Prospects Add Momentum
Recent developments in the U.S. regulatory space have added to the optimistic outlook. The U.S. House moved the GENIUS Act forward, providing a clearer framework for stablecoins. Following the announcement, XRP temporarily spiked above $3 as investors speculated on the implications for Ripple’s RLUSD stablecoin.
Legal uncertainty continues to lessen as Ripple has fulfilled its financial obligations in the ongoing SEC lawsuit. A former SEC attorney confirmed that Ripple has paid its $125 million penalty. Final proceedings now await the appeal dismissal, removing a key concern for investors.
Momentum is also building behind the potential approval of an XRP-based exchange-traded fund. SEC Commissioner Hester Peirce recently stated that current delays should not be viewed as rejections, providing further hope to XRP supporters.
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