After a brief consolidation around the $2.5 mark, technical indicators suggest that XRP might be preparing for a significant upward movement. With the cryptocurrency hovering near its resistance level, could it soon reach the $5 mark, eclipsing its previous all-time high?
A Bullish Setup: What the Charts Reveal
In the past 24 hours, XRP has regained momentum, trading back above the crucial $2.5 level after a period of price consolidation. The asset had been locked in a narrow trading range between $2.3 and $2.5 for about a week. This consolidation typically sets the stage for a breakout, and XRP’s recent price action suggests that this breakout could be toward higher ground.
On the daily chart, XRP shows bullish RSI divergence with strong support below, suggesting it’s poised for a rapid rise toward the $5 mark. Source: BitcoinGalaxy on TradingView
A TradingView analysis shows the technical indicators such as the Relative Strength Index (RSI) highlight a bullish trend. The RSI has shown a bullish divergence in the direction of the daily graph with the RSI hitting higher lows although the price has remained stable or made lower lows overall. This type of divergence is often a sign of an upcoming reversal of the trend to the upside in the coming week therefore indicating that a significant move to the upside will probably occur a short period from now.
Strong Support and Market Fundamentals
XRP has managed to hold above critical support levels, even in the face of market-wide downturns. Despite broader crypto market weakness, XRP has demonstrated resilience by maintaining support above $2. The current price action reflects strength rather than weakness, signaling that the recent price drops were more a result of general market conditions than any underlying issues with XRP itself.
The XRP price must survive the $2 support to keep up with the bullish momentum. Source: Nology3000 on TradingView
This enduring strength could lay the groundwork for a new rally. Analysts suggest that as long as XRP remains above these levels, the path toward a potential new all-time high is open, with a target of $5 becoming increasingly plausible. As one chart analyst noted, “The price action and structure are aligning for a significant rally, with $5 looking like the next key milestone.”
The Role of South Korean Traders in XRP’s Recovery
A surprising factor contributing to XRP’s current bullish outlook is the robust buying activity from South Korean traders. During the recent market sell-off, XRP’s price dipped as low as $1.78, prompting aggressive buying from traders on exchanges like Upbit. This buying pressure quickly pushed the price back above the crucial $2 level, showcasing the strong demand for XRP.
The Korean traders aggressively bought XRP and BTC during the sell-off while dumping ETH. Source: LTRD via X
An anonymous market analyst, known as “Itrd” on X, highlighted that South Korean traders were actively accumulating XRP, with significant volume spikes recorded during the dip. “They weren’t just buying in one moment; it was a consistent effort, which helped stabilize XRP’s price,” the analyst remarked.
Whale Activity and Market Caution
Despite the apparent price momentum within the XRP market due to the activity of large holders, it is prudent that some caution should be displayed due to the whale market activity that is going on in the market. Data from CryptoQuant reveals that a day ago more than 180 million XRP tokens were being moved from the XRP holdings to various exchanges. This could be indicative of large holders perhaps engaging in profit-taking. One notable transaction saw a massive 40 million XRP transferred in a single move.
Korean demand is driving whales to buy millions of XRP, with over 180 million tokens moved to Binance. Source: XRP The One via X
This could introduce selling pressure in the short term, especially if these large holders continue to exit their positions. However, it remains to be seen whether these transfers are part of a broader strategy or simply profit-taking after the recent price rebound.
Additionally, the reduction in XRP’s open interest in the derivatives market, which saw a 44% drop in February, suggests that leverage-driven positions have been cleared out. This “reset” could lead to more organic price movements, potentially boosting XRP’s ability to push higher if renewed buying interest takes hold.
Watch – XRP Price Analysis Video
Legal Landscape: Ripple’s Legal Battle with the SEC
Another important reason that is going to impact the price of XRP is the protracted lawsuit between Ripple and the US Securities and Exchange Commission (SEC). The lawsuit has been in process for a number of years, but new developments in it caused many to believe that a resolution is imminent. Experts think that if Ripple is victorious, the price of XRP is going to surge a great deal.
Former SEC Counsel Coy Garrison argues that digital assets aren’t securities and calls for the withdrawal of Gensler-era lawsuits. Source: JackTheRippler via X
The SEC just altered the status of a key individual in the Ripple case, causing speculation that the company is shifting its stance. The Chief Legal Officer of Ripple, Stuart Alderoty, is optimistic regarding news of the legal developments, noting potential positive reforms in the way that the SEC approaches cryptocurrency. An advantageous ruling would not just send the price of XRP higher but also enable other digital currencies to enjoy clear rules. A favorable resolution could not only boost XRP’s price but also open the door to potential regulatory clarity for other cryptocurrencies.
Rumors of an XRP ETF Approval
Adding to the optimism surrounding XRP’s future, rumors are circulating that an XRP exchange-traded fund (ETF) could be approved soon. For this to happen, the SEC would likely need to settle its case with Ripple, as approval of an ETF often requires regulatory clarity. If an ETF were to be approved, it could signal institutional acceptance of XRP and trigger a significant price rally, possibly driving the asset into new price territory.
Looking Ahead: Is $5 on the Horizon for XRP?
XRP’s chart is showing all the signs of a potential breakout to new all-time highs. The combination of strong technical indicators, consistent demand from traders, and the possibility of legal and regulatory shifts could set the stage for a price surge toward $5. However, the market remains volatile, and factors such as whale activity, broader market sentiment, and legal developments will continue to play a pivotal role in XRP’s price movement.
The XRP price was $2.39, down 2.64% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin
As one analyst put it, “XRP is in a strong position to make a move toward $5, but whether it can sustain this momentum will depend on its ability to hold above key support levels and navigate the complex market dynamics in play.” For now, XRP remains one to watch closely as the battle for new highs continues.
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