XRP Price Analysis: Bulls or Bears-Who Will Drive XRP’s Next Move

XRP Price Prediction: Will XRP Hit $5 or Face Another Price Rejection?

The cryptocurrency market cap has dropped by 1.76% to $3.15 trillion. XRP has likewise failed to hold the psychological milestone of $2.50, trading at $2.45, about 5% down in the last 24 hours on a $3.6 billion trading volume. Many analysts predict that XRP will soon surge towards $5 due to technical formation. Let's look into the reason behind the rise.

Whale Activity Sparks Bullish Hopes

According to Whale Alert, 20 million XRP ($50.7 million) were transferred from Gemini to an unknown wallet, indicating potential bullish momentum.

Technical Analysis: Bullish Patterns Emerge

Breakout from Long-Term Consolidation

In a recent X article, crypto researcher Javon Marks stated that XRP could be about to experience another major upward continuation wave. The charts show bullish patterns, including a breakout from a long-term consolidation that forms a classic bull pattern. 

Furthermore, concealed positive divergence between the RSI and price action supports the thesis for an upcoming rise, indicating increased purchasing pressure despite recent price declines. These technical clues indicate that XRP may be prepared for a strong upward rise.

Double Bottom Formation?

According to EGRAG CRYPTO, XRP is currently at a critical juncture and could create a double-bottom pattern. To invalidate this bearish setup and confirm bullish momentum, XRP must maintain a daily close above the $2.63 to $2.65 level. A failure to break this level could signal a fake-out, resulting in additional negative pressure.

Falling Wedge Breakout Potential

According to Rose Premium Signals, XRP is consolidating within a falling wedge pattern, which is a classic bullish structure that frequently precedes large upward advances. A break above the critical $2.60 to $2.75 resistance zone might spark a robust rally and send XRP to new highs. The forecasted objectives after the breakout are $4.2130 and $4.9515, indicating a significant upside if the pattern plays out as planned.

XRP/USDT Daily Chart: Key Levels to Watch

The daily XRP/USDT chart shows a definite bullish trend, with the price slowly rising within an ascending channel. This pattern of rising highs and higher lows indicates a long-term upward trend. However, the recent price movement shows that there is a halt.

The last two daily candlesticks have created Doji patterns, which are classic indicators of market hesitation. These patterns frequently indicate a potential shift in momentum, either maintaining or reversing the current trend, depending on how the market reacts next.

Source: TradingView

If XRP holds the lower channel support and gains momentum, the price could climb toward the upper boundary near $3.50. However, if it fails to maintain this support and breaks below the channel, further losses may follow. In that case, the next key support level sits at $2.20, with the potential to drop as low as $1.80.

Technical Indicators: RSI and MACD Insights

According to technical indicators, the RSI is now in the neutral zone but is approaching oversold territory, which could trigger buying interest if positive sentiment returns. Meanwhile, the MACD is slightly negative, indicating minimal bearish momentum; nevertheless, if buyers enter the market, a bullish crossover may occur, perhaps resulting in a trend reversal.