TLDR
- XRP is currently trading at $2.16, holding steady above the crucial $2 support level
- Derivatives traders are showing bearish sentiment with long position liquidations of $4.89 million
- Elliott Wave analysis suggests potential for massive growth to $12 by 2026
- Whale accumulation shows large investors have purchased over 440 million XRP tokens in the past month
- The SEC vs. Ripple lawsuit appeal deadline has been extended to June 15, coinciding with XRP ETF decision timing
XRP is currently trading at approximately $2.16, caught in a consolidation phase between $2.17 and $2.13. The $2 price point continues to serve as a critical support level for the cryptocurrency after its breakout from consolidation on April 27.
Technical indicators offer mixed signals for XRP’s short-term prospects. While the daily chart shows positive readings from both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), derivatives data paints a more cautious picture.
Traders should note that XRP is trading approximately 15% below its target resistance at $2.50, which represents the 50% Fibonacci retracement level from its peak of $3.40 to a low of $1.61.
The $3 level remains a key target for XRP in May 2025. A daily close above resistance levels R1 and R2 could confirm an uptrend that puts this target in play.
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Derivatives Market Shows Caution
Recent data from Coinglass reveals that while XRP trading volume has increased by 24%, open interest has declined slightly over the past 24 hours. The long/short ratio currently sits below 1, indicating derivatives traders are not bullish at the start of the week.
The 24-hour liquidation data shows $5.24 million in liquidated positions, with $4.89 million of that being long positions. This suggests bullish traders have been forced to close their positions at a loss.
Whale Activity Signals Long-Term Bullish Outlook
Despite short-term market uncertainty, whale activity provides reason for optimism. On-chain data shows large investors have been accumulating XRP significantly.
Addresses holding between 1 million and 10 million XRP have purchased 190 million tokens in the last month. Even more impressively, wallets holding between 10 million and 100 million coins have accumulated 440 million XRP during the same period.
🐋 Whales Are Loading Up on $XRP
On-chain data from Santiment reveals that whales have been on a buying spree over the past month:
🔹 Addresses holding 1M-10M XRP scooped up 190M tokens
🔹 Larger whales (10M–100M XRP) accumulated a massive 440M
Whales often buy low in… pic.twitter.com/1SgEagjhxH
— Trader Edge (@Pro_Trader_Edge) May 5, 2025
This accumulation by large holders typically signals anticipation of future price increases.
Elliott Wave Pattern Suggests Massive Growth Potential
According to Elliott Wave analysis, XRP may have completed a corrective pullback phase between the $2.05 and $1.65 range. This suggests preparation for the third wave of the pattern, which is typically characterized by strong, sustained upward movement.
$XRP really looking forward for this upward continuation! Soon the extensive move will form to make this one a double-digits crypto. Target is the same since before it broke out => around $12.#Elliottwave #XRP pic.twitter.com/z0LzNl5irL
— EWT (@EWcycles) May 4, 2025
One analyst using this technical approach projects a potential price target of $12 by 2026, representing a 500-600% increase from current levels.
For this projection to materialize, XRP needs to establish a pattern of higher highs and higher lows, maintaining its position within an emerging ascending channel.
Regulatory Developments May Impact Price
The ongoing SEC vs. Ripple lawsuit continues to influence XRP’s market position. The deadline for the Ripple lawsuit appeal has been extended from April 16 to June 15.
Interestingly, Franklin Templeton’s XRP ETF approval decision has been delayed to June 17, 2025, just after the expiry of the 60-day wait period for the Ripple lawsuit. Legal experts like Bill Morgan have described this timing as “potentially strategic,” expressing optimism toward an ETF approval in 2025.
Expert Opinions Divided
Expert opinions on XRP’s future remain mixed. Forest Bai, co-founder of Foresight Ventures, expressed skepticism about XRP achieving “digital gold” status due to its design as a payment protocol rather than a store of value.
In contrast, Dan Tapiero of 10T Holdings maintains a bullish outlook on the XRP ETF launch. He praised the resilience of XRP and its team through regulatory challenges and delistings across major exchanges.
In the short term, XRP appears to be forming a falling wedge pattern on the four-hour chart, which could support a breakout past $2.36. If this resistance breaks, XRP may rally by approximately 7% in the near term, potentially clearing the path to $2.59.
The most recent on-chain data shows funding rates for XRP turned positive on May 1 after closing April with two consecutive days of negative readings. Positive funding rates typically indicate derivatives contract prices exceeding spot market prices, which is generally considered bullish for the token in the short to medium term.
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