The US-Israeli strikes on Iran over the weekend brought geopolitical risk back to the center of the crypto markets, but in the latest weekly note from CryptoInsightUK, the immediate takeover of XRP is not easy. Founder Will Taylor says the first shock may come at a time when the bearish position is already crowded, creating conditions where XRP can hold up better than Bitcoin and Ethereum if the market takes the news without new disruptions.
Writing in the Week 184 edition of Weekly Insight, Taylor prioritized the conflict as a transformative event. “There could be a lot of volatility in the near term,” he wrote, and added that this was also the kind of background where bottoms could form “when the bad news starts.”
He furthered this point in a lengthy passage that gets to the heart of his market theory: “I’m not saying that number three is a definite outcome here. But I am saying, and I’ve been saying this for a while, that when people are overly emotionally invested in an event and overly concerned about it, that’s usually when the markets make a decline.”
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That distinction is important for XRP because Taylor doesn’t argue that the battle is bullish for crypto itself. He argues that market performance is more important than the headline. In his reading, Bitcoin initially sold on the news, but the movement lacked the kind of following that would ensure a deep wash. He noted that liquidity is still low in Bitcoin, around $60,000, and said he would still prefer to see that level swept before calling for a long-term rise.
Ethereum, in his telling, looked the same. Taylor said there is still a low near $1,720, but emphasized that large pools of short-term funds are sitting above the price rather than below it. That left room for another dip, but not necessarily a bearish reset structurally.
Why XRP Looks Different
XRP is where his framework is most interesting. Taylor said that XRP has already done some of the work that Bitcoin and Ethereum were waiting to do. “XRP had an upward spike about ten days ago Bitcoin and Ethereum did not. It showed relative strength there,” he wrote. “And now XRP is already dipping into the pools of liquidity that Bitcoin and Ethereum are waiting to tap. So in a way, XRP has already done what others haven’t.”
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He stopped short of calling that guarantee, but the meaning was clear. If the market is entering a major fear-driven event and XRP is already trading with near-liquidity while its major peers are not, then XRP may be better placed if the selling pressure dissipates instead of accelerating.
Taylor said he was discussing the possibility of altcoins leading XRP and “generally leading the market,” with this low-term setup giving at least an indication of that.
Taylor’s broader thesis rests less on war itself than on market structure. He continues to argue that Bitcoin still has significant daily currency above current levels and could make new highs, while altcoins are on the way there. He tied that idea to Bitcoin’s dominance, where he said the Bollinger Bands were as tight as they’ve been on a weekly basis and overstretched on a monthly basis. If that volatility slows down, altcoins will be put in a position to participate.
That’s why he also ended the note on XRP against Ethereum. Taylor said the XRP/ETH chart has “started a new upward trend” and could be the start of a major bullish move. His closing outline was vague: if Bitcoin moves forward, if dominance weakens, and if XRP continues to hold momentum against Ethereum, then “XRP may be set for an explosive move.”
At press time, XRP traded at $1.3437.
The featured image was created with DALL.E, a chart from TradingView.com
