- Analysts predict XRP could reach a new all-time high of $5, driven by strong technical indicators and ETF optimism.
- A golden cross in XRP’s RSI suggests a bullish breakout, with key resistance levels at $2.90 and $4 marking the path forward.
XRP’s price rally has gained momentum, with analysts predicting a potential surge to a new all-time high (ATH) of $5. Crypto analyst Dark Defender has identified a bullish pattern in XRP’s chart, highlighting a golden cross in the Relative Strength Index (RSI) as a key indicator of further gains. Other analysts, including Egrag Crypto and Mikybull Crypto, have also set ambitious price targets, reinforcing bullish sentiment.
Additionally, optimism surrounding a potential spot XRP ETF approval by the U.S. Securities and Exchange Commission (SEC) has fueled market interest, further supporting the case for a major price breakout.
Analysts Predict a Strong Rally Toward $5 and Beyond
Dark Defender has projected that XRP could soon reach $5, emphasizing that breaking past the $2.90 resistance level is crucial for this move. In an X post, the analyst noted that once XRP clears this level, it could advance toward the Fibonacci target of $5.85 and potentially hit $8.03 in the short term. He also identified $2.44 and $2.33 as key support levels that traders should monitor.
Egrag Crypto also weighed in, setting an initial price target of $3.40 before XRP moves toward a new ATH. Meanwhile, analyst Mikybull Crypto pointed to the $4 level as a critical resistance point, suggesting that a breakout above this threshold could push XRP even higher. Despite the strong bullish outlook, CasiTrades cautioned traders to be mindful of the $2.67 and $2.95 resistance levels, which could temporarily stall XRP’s upward trajectory.
Spot XRP ETF Speculation Fuels Market Optimism
One of the biggest factors driving XRP’s price rally is speculation around a potential spot XRP ETF. The SEC recently acknowledged Grayscale’s filing for an XRP ETF, sparking optimism among investors. While this acknowledgment does not guarantee approval, it signals growing institutional interest in the asset.
Historically, ETF approvals have had a profound impact on cryptocurrency prices. Bitcoin and Ethereum saw major price surges following their ETF approvals, and analysts believe XRP could follow a similar path. If the SEC approves a spot XRP ETF, it could attract institutional investors, enhance liquidity, and significantly increase demand for the token.
As CNF reported, XRP has already been gaining traction in institutional markets. In Coinbase’s Q4 2024 earnings report, XRP accounted for 14% of total transaction revenue, surpassing Ethereum (ETH) and Solana (SOL) in trading volume. This growing market presence suggests that investor confidence in XRP is strengthening, further supporting the case for a rally to $5 and beyond.
XRP’s Market Performance Strengthens Bullish Outlook
XRP’s recent price movement has been impressive, surging over 70% since the start of the year and reaching a seven-year high. However, key resistance levels remain a challenge. The $2.80 mark has emerged as a critical hurdle, with technical indicators suggesting a possible pullback if momentum weakens.
The daily chart shows that XRP is trading within a rising wedge pattern, which could lead to either a breakout or a correction. The RSI suggests that XRP is in overbought territory, while the MACD indicates a potential bearish divergence. Additionally, declining trading volume could slow further gains unless renewed buying pressure emerges.
Whale activity with over $430 million in large XRP transactions was recently recorded. Such movements often signal strategic market positioning by major holders, which could influence short-term price action.
