XRP Price Prediction Targets $5: Will Wave 3 Fuel the Next Big Rally?

Technical indicators suggest that the consolidation phase has concluded, setting the stage for a potential bullish wave.

Technical analyst Dark Defender posted on X recently, observing that the relative strength index (RSI) of XRP has hit a low level on the daily chart, signaling the conclusion of the consolidation phase. The analyst anticipates the start of a robust “wave 3” rally that is likely to drive XRP to $5.85—a rise of nearly 130% from its current value of $2.55.

As XRP undergoes a correction, it remains on track toward its key Fibonacci target above $5, mirroring its 2017 movement. Source: Dark Defender via X

Dark Defender has also put forth a more ambitious long-term target, suggesting that XRP could reach up to $8.76. That would be a 243% rise from current levels, surpassing its previous all-time high of $3.40. But before heights like these are achieved, XRP will first have to breach significant resistance levels.

XRP is following a 2017-like pattern, with $5.85 as the key Fibonacci target after breaking major resistance levels. Source: Dark Defender via X

The most significant support levels in play currently are $1.88 and $2.33, both of which have also functioned as significant barriers to more losses. On the upside, XRP is halted at $2.66 and $3.12—levels that had earlier functioned as support. If the digital currency can break through these barriers, it can then aim for $3.29 and $3.38, both of which had earlier prevented XRP from breaking past the $3.40 level.

Apart from technicals, regulatory fronts can also play a major role in XRP direction. The United States Security and Exchange Commission (SEC) has recently approved the application of Grayscale for an XRP exchange-traded fund (ETF), and this may trigger a reversal in institutional demand.

BlackRock may have prioritized a Bitcoin ETF, but analysts suggest an XRP ETF—driven by utility and adoption—could be the true game-changer. Source: XFinanceBull via X

This follows regulatory leadership shifts, as the exit of previous SEC Chair Gary Gensler, infamous for his draconian persecution of Ripple Labs, leaves space for the new regime to reverse the regulatory narrative, with expectations that approval of an XRP ETF would be forthcoming—enabling increased liquidity and mass adoption.

The precedent for institutional investment was set by last year’s approval of Bitcoin and Ethereum ETFs, and both assets have subsequently experienced a steep price rise.

Meanwhile, Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), has just approved the world’s first spot XRP exchange-traded fund (ETF).

This ETF, managed by Hashdex with administration by Genial Investimentos, is set to launch soon on Brazil’s B3 exchange, offering investors a regulated avenue to gain exposure to XRP without the hassle of dealing directly with crypto exchanges.

For investors, Brazil’s proactive stance on crypto ETFs is a game-changer. It lowers the entry barriers for both institutional and retail investors looking to dip their toes into XRP waters in a secure and compliant manner. JPMorgan analysts even suggest that the approval of similar spot ETFs could funnel billions into the crypto market.

Adding a twist to the tale, President Trump recently shared a news story highlighting Ripple’s status as a U.S. crypto company. This move is expected to bolster Ripple’s standing with regulators, potentially giving XRP investors something to cheer about. In fact, following this endorsement, XRP’s price saw a 6.92% surge overnight—a phenomenon some are dubbing the “Trump Pump.”

President Trump posted a news story about Ripple on Truth Social, via X

Despite the bullish outlook, XRP is facing immediate hurdles. The cryptocurrency has seen a 17% decline over the past two weeks, with analysts citing its correlation with Bitcoin’s price movements. If Bitcoin continues to struggle below the $96,000 mark, XRP may experience further pullbacks before resuming its uptrend.

Breaking the $3 resistance remains a key challenge for XRP in the short term. Source: AdamIdris2 on TradingView

Crypto analyst Josh from Crypto World has noted that a daily close below $2.58 could trigger a bearish divergence, potentially flipping previous support levels into resistance. However, if XRP can maintain the support at $2.30, it may extend its bullish trend and result in better price levels in the future.

The other key market development is the surge in volume. Volume on XRP has risen 13% in the past 24 hours, to $4.84 billion. Heightened activity is in line with investor renewed interest, as price action remains contained. On-chain analyst Ali Martinez explained that XRP is in a “cup and handle” formation—a common bull formation that could propel it to $3.35.

For XRP to reach the much-sought-after $5 level, many factors must come together. First, the token must break significantly above the key resistance points of $3.40. Secondly, regulatory clarity, and most importantly, the chances of an XRP ETF approval, can be a big catalyst.

Ripple (XRP) was trading at around $2.67, up 5% in the last 24 hours at press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin

Long-term investors appear to be accumulating, as noted by an exchange outflow of $60 million in XRP. This is a sign that investors are perceiving the current price levels as an attractive purchase opportunity, confirming the potential for a future rally.

While short-term volatility remains a possibility, the broader outlook for XRP remains optimistic. Should the predicted wave 3 rally materialize, XRP could finally enter a new phase of price discovery—one that might push it well beyond its previous records.