XRP is at a critical turning point, trading just above the psychological support level of $2, with investors and analysts closely watching for what could be the beginning of a major upward shift.
The XRP price prediction landscape is currently shaped by a combination of technical signals, whale activity, and looming legal developments involving the latest Ripple SEC lawsuit news.
As of Tuesday, May 6, XRP is priced at $2.18, with the altcoin navigating a narrow band between $2.13 and $2.17. Despite recent losses and subdued sentiment in the derivatives market, technical patterns and long-term forecasts paint a potentially bullish picture.
Elliott Wave Analysis Suggests a Rally to $12
According to crypto analyst EWCycles, XRP may be gearing up for a powerful third wave of an Elliott Wave formation—a move that could propel the token as high as $12 between 2025 and 2026. This forecast represents a possible 2,900% increase from recent lows.
EWCycles emphasized the importance of XRP forming higher highs and higher lows within an emerging ascending channel. “The technical setup points to a long-term uptrend, especially if XRP maintains support above $2,” the analyst noted.
This XRP price prediction is also supported by a falling wedge pattern visible on the four-hour chart, often considered a bullish reversal indicator. A breakout past $2.36 could trigger a short-term 7% rally, with the next target around $2.59. However, if the $2.13 support level is lost, downside pressure could push the XRP value toward $1.96.
Whale Accumulation Signals Growing Confidence
Ripple XRP news from the blockchain reveals that major players are accumulating significant amounts of the token. Over the past month, wallets holding between 10 million and 100 million XRP have amassed 440 million tokens, suggesting strong confidence among institutional holders.
“Whales often accumulate in quiet markets,” said a Santiment analyst. “It’s a sign that they’re positioning ahead of a potential rally.”
Still, data also shows a recent decline in large XRP transactions—particularly those exceeding $100,000 and $1 million—potentially indicating a pause in aggressive accumulation. Meanwhile, derivatives activity suggests caution, as $4.89 million in long positions were liquidated within 24 hours, reflecting waning bullish conviction in the short term.
Technical Indicators Support a Bullish Bias
On the daily chart, XRP remains 15% below the $2.50 resistance level, which represents the 50% Fibonacci retracement from its decline off a $3.40 high. Yet, indicators like the Relative Strength Index (RSI) above 54 and MACD green histogram bars both support a near-term bullish outlook.
Market analysts are keeping a close eye on $2.35 and the upper resistance band between $2.45 and $2.50. A daily close above these levels could trigger renewed momentum toward the psychological $3 mark, potentially bringing the Ripple market into a new phase.
Legal Developments Could Define XRP’s Next Move
At the center of Ripple news is the prolonged legal dispute with the U.S. Securities and Exchange Commission. The XRP lawsuit has seen another delay, with the SEC extending its deadline to appeal the court ruling until June 15, 2025. Just two days later, on June 17, the agency is expected to decide on Franklin Templeton’s proposed XRP ETF—fueling speculation about coordinated timing.
Bill Morgan, a well-known lawyer following the case, called the sequence of events “potentially strategic.” He added, “This may be the beginning of the end for the XRP SEC lawsuits.”
The potential dismissal of the appeal or an ETF approval could act as a powerful catalyst for XRP price movement. “A resolution would not only remove regulatory overhang,” said Dan Tapiero of 10T Holdings, “but also unlock real upside for the Ripple currency price.”
XRP Faces a Mixed Short-Term Outlook
Despite long-term optimism, short-term signals remain uncertain. XRP has struggled to break above the $2.25 resistance and continues to face pressure from bearish divergence patterns on the daily chart. Should XRP drop below the $2.15 support zone, traders could see the next line of defense at $2.00 or even $1.95.
Crypto.news noted that XRP derivatives volume has climbed 24% recently, but open interest has remained nearly flat. This divergence suggests indecision among traders as they await clarity from the legal front.
Looking Forward: A Critical Few Weeks Ahead for Ripple XRP
XRP is currently trapped between strong support and stiff resistance, with the next few weeks poised to be pivotal. With technical indicators flashing mixed signals, whale behavior pointing to long-term confidence, and the XRP lawsuit update looming in June, the market stands at a fork in the road.
If Ripple and the SEC can reach a resolution, or if an ETF is approved shortly afterward, XRP could experience one of its most significant surges in years. Until then, the $2 level remains the line in the sand—one that could determine whether XRP breaks new ground or falls back into consolidation.
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FAQ Section
1. What is the highest price XRP could reach by 2026?
Analysts predict XRP could surge to $12 if key support levels hold and bullish Elliott Wave patterns materialize.
2. Why are whales accumulating XRP?
Large holders are likely positioning for a potential rally, signaling confidence in long-term growth despite short-term volatility.
3. How does the SEC lawsuit impact XRP’s price?
A favorable resolution or ETF approval could remove regulatory uncertainty and act as a catalyst for significant price movement.
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4. What are the key resistance levels for XRP?
Critical levels to watch include $2.35, $2.50, and $3.00—breakouts above these could signal renewed bullish momentum.
5. Is XRP a good investment for 2025?
While technicals and whale activity suggest upside potential, short-term risks remain due to legal uncertainties and market sentiment.
6. What happens if XRP loses $2 support?
A breakdown below $2 could lead to further declines toward $1.95 or lower, though long-term holders may view this as a buying opportunity.