Market Strategist: XRP Going Parabolic Soon. Here’s why

Financial commentator Levi Rietveld recently shared a social media post referencing a video from Raoul Pal. In the video, Pal discussed macroeconomic and regulatory factors that could potentially strengthen the cryptocurrency market and impact XRP's price.

Pal argued that several key economic indicators are shifting. These include the anticipated decline of the Treasury General Account (TGA), the end of quantitative tightening (QT), China's apparent expansion of its balance sheet, and upcoming regulatory changes alongside potential interest-rate cuts.

He presented these developments as components of the next upward phase of the business cycle, suggesting it would channel purchasing power into risk assets like cryptocurrencies. Pal also criticized traders who focus excessively on short-term price movements rather than broader macro trends.

Rietveld's post encouraged community members to consider these macro factors, positing them as a potential basis for renewed strength in the cryptocurrency market, with a specific focus on XRP.

Market Reaction and Investor Commentary

In response to Rietveld's post, an X user known as KtyKty_uuu expanded on the market-mechanism side of the argument. This user asserted that inflows from an active spot exchange-traded fund (ETF) for XRP are already supplying liquidity to the market.

The commenter argued that continued ETF-driven demand could realistically push XRP above targeted price levels within a shorter timeframe. They also suggested that sustained inflows into ETFs next year might support further price appreciation.

Rietveld's post primarily relays these perspectives without presenting them as definitive outcomes. It highlights observable policy changes and market mechanics—such as reduced TGA balances, the cessation of QT, central bank behavior in China, regulatory adjustments, and prospective rate reductions—as factors that proponents believe create an environment conducive to risk-on investments.

The social media discussion also underscored a divergence between investors focused on macro trends and those prioritizing short-term technical trading, with the former emphasizing policy and liquidity dynamics.

Assessment and Implications

Rietveld's coverage synthesizes Pal's macroeconomic outlook and comments from retail observers who are focused on ETF inflows. The article does not claim that these factors guarantee a rapid price increase for XRP. Instead, it presents the reasoning used by those who anticipate a potential strengthening of demand for cryptocurrencies.

It is important to note that this perspective relies on economic forecasts, expectations regarding policy changes, and assumptions about market structure. Each of these elements carries inherent uncertainty and is contingent on evolving conditions and the reactions of both institutional and retail participants.