XRP has broken a significant long-term trendline, signaling a strong bullish momentum that could propel its price to $5, according to analysts. This surge follows the resolution of the long-standing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC), which has spurred investor confidence in the digital asset.
XRP Breakout Sparks Bullish Predictions
XRP’s recent price breakout above a descending trendline, which has held for a considerable period, has raised expectations of continued price increases. Analysts believe this marks the beginning of another bullish cycle, with targets set as high as $5. This positive momentum has been further fueled by the SEC’s decision to drop its lawsuit against Ripple, a move that has significantly impacted XRP’s price trajectory.
After the lawsuit’s resolution, analyst Dark Defender noted that the crossing above the long-term trendline triggered a strong green candlestick, confirming bullish market sentiment. Fibonacci retracement levels now indicate solid support for further upward movement, with experts predicting XRP could surpass resistance levels at $3.40 and $3.78 before reaching the $5 target.
Elliott Wave Analysis Suggests Continued Gains
Market analysts are also drawing on Elliott Wave theory to project continued growth for XRP. According to this analysis, XRP is currently in an impulsive wave pattern, indicating further price appreciation. The breakout from the long-term trendline supports this bullish outlook, with the conclusion of the Ripple vs. SEC lawsuit eliminating a major obstacle to XRP’s potential growth.
Concerns Over Whale Activity and Leverage
While the bullish outlook for XRP is strong, some analysts, including Ali Martinez, have raised concerns over the rally’s underlying dynamics. Data from Santiment reveals that large whale investors have not been major contributors to the recent price surge. This absence of significant whale accumulation raises questions about the sustainability of the rally.
Moreover, analysis suggests that a significant portion of the price movement has been driven by leverage, as reflected in the $200 million increase in open interest for XRP futures. When leverage influences market activity, it often leads to heightened volatility and potential corrections.
XRP Price Prediction: Can $20 Be Achieved?
Despite these concerns, analysts remain optimistic about XRP’s price prospects. A report by CoinGape suggests that the approval of 18 XRP ETF applications by the SEC could trigger a massive rally, potentially pushing XRP’s price to $20. This aligns with predictions that institutional investments through these ETFs could lead to a parabolic surge in XRP’s value.
As of the latest update, XRP was trading at $2.51, marking a 9% increase in the past 24 hours. The altcoin’s 24-hour trading volume surged by 178.83%, reaching $9.74 billion, further reflecting
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