XRP has regained bullish momentum, climbing over 4% in the past 24 hours to trade above $2.4 mark. The token is rebounding from a sharp sell-off triggered by Donald Trump’s announcement of 25% tariffs on U.S. imports from Canada and Mexico.
Despite the recent volatility, market experts suggest XRP is now aligning for a potential rally to new all-time highs, provided it holds above key support levels.
XRP’s path to a breakout
XRP’s price action is aligning with a structured Elliott Wave formation, as noted by crypto analyst DarkDefender. The recent correction to $2.33 coincided with a key Fibonacci retracement level, further supporting the bullish structure.
Picks for you
DarkDefender notes that the pullback appears to have completed Wave 2, setting the stage for a move toward $2.60 in the near term.
If XRP maintains support at $2.33 and $2.22, analysts anticipate a rally toward $3.39 in the coming weeks. Holding these levels could also trigger Wave 3, which could propel the token toward $5.85, according to Elliott Wave projections.
This outlook is further supported by projections from AI-driven market models, which have set an average price target of $3.16 for XRP in the near term, a 26.5% increase from current levels.
Key factors fueling XRP’s momentum
Beyond technical indicators, fundamental factors are also playing a crucial role in XRP’s bullish momentum.
Crypto analyst Ali Martinez has highlighted a 620% surge in active XRP addresses, rising from 74,589 to 462,650 over the past week indicating a surge in network activity.
Adding to the optimism, U.S. President Donald Trump’s announcement of the U.S. Strategic Reserve, with XRP as one of its assets, could significantly boost institutional adoption and enhance the token’s long-term value.
Trump’s pro-crypto stance has already influenced market sentiment, with investors closely watching regulatory developments for further signs of mainstream adoption.
At the same time, regulatory clarity remains a key factor for XRP’s price trajectory. The long-standing SEC lawsuit against Ripple has been a persistent hurdle, but recent developments indicate positive momentum.
The SEC has dismissed multiple lawsuits in recent weeks, boosting sentiment across the sector. A favorable resolution in Ripple’s case could be a major bullish catalyst, paving the way for increased institutional confidence in XRP.
Moreover, the SEC is expected to rule on multiple applications for spot XRP exchange-traded funds (ETFs) in the coming months. If approved, these ETFs could broaden institutional access to XRP, potentially driving significant inflows and pushing prices higher.
XRP price analysis
At press time, XRP was trading at $2.47, posting a 7% gain over the past week, which has lifted its year-to-date (YTD) returns to 15%.
While the broader crypto market has recorded $2.9 billion in outflows over the past three weeks, XRP has defied the trend, attracting $5 million in inflows as of February 28, according to a CoinShares report.
With technical indicators flashing bullish signals, along with strong fundamental factors, XRP appears to be on the verge of a major breakout.
However, its ability to hold key support levels will be critical in determining whether it can sustain its upward momentum and reclaim new highs.
Featured image via Shutterstock
