The cryptocurrency market just experienced a volatile weekend as Bitcoin recorded a significant drop, at one point hitting $110,500 before a slight recovery above $112,700. However, while the leading cryptocurrency faced difficulties, XRP is showing rare positive signals, attracting the attention of analysts.
Veteran Analyst: XRP Could Reach $5
On social media platform X, Davinci Jeremie – a well-known trader who advised buying BTC when it was only $1 back in 2011 – stated that XRP has the potential to break out to $5 soon. He pointed out that XRP's recent price structure has formed a 'W' pattern along with creating new local highs, and this is a genuine growth phase, not price manipulation.
Positive Divergence Signal: Is XRP Preparing for the Next Bull Wave?
According to trader CasiTrades, while BTC sets a new local bottom, XRP remains firm in the accumulation zone, showing positive divergence – a sign often indicating an early signal for a strong price increase.
CasiTrades particularly emphasizes the $2.91 zone as a 'golden retrace' level – an important area according to Elliott Wave Theory, often marking the end of Wave 2 before entering a strong Wave 3 upward. If XRP continues to hold above this level, the next target will be the resistance at $3.12. A clear break of this level could confirm a larger upward trend, paving the way for further targets.
Technical Outlook: Resistance at $3.12 – $3.70 and Beyond
Analyst Ali Martinez (@ali_charts) also made a similar prediction, suggesting that XRP could test the $3.70 zone in the short term based on technical patterns and increasing strength in Fibonacci extension indicators.
Currently, XRP is trading around $2.96, successfully defending the $2.90 zone multiple times. Technical indicators such as RSI (Relative Strength Index) are showing bullish divergence, implying that the downward momentum is weakening despite prices testing lower levels. Additionally, on-chain data such as Spent Output Profit Ratio (SOPR) also indicates that profit-taking pressure has significantly decreased, opening up opportunities for a new upward trend.
If XRP decisively surpasses the $3.12 resistance level, many experts believe the next target will be $3.70, followed by $4 and possibly setting new highs if the upward trend is maintained.
Conclusion
In the context of the cryptocurrency market facing significant downward pressure, XRP's ability to maintain its growth structure and stand firm as BTC weakens makes this token stand out compared to many other major coins. While it is still too early to assert a long-term bullish cycle, current signs suggest that XRP may be in the preparation phase for a new breakout.
