As XRP consolidates below the $3 mark, a cryptocurrency analyst has noted that the asset’s technical structure hints at a possible rally toward the $8 level.
Specifically, the current XRP consolidation serves as a breakeven point for further gains, and once the $3 resistance is breached, the next target could exceed $5, according to pseudonymous analyst Dark Defender in an X post on February 4.
Once this resistance is broken, the bullish wave structure suggests a strong push toward $5.85, with the final fifth wave aiming for levels above $8.
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The analysis is based on the Elliott Wave structure, which projects the third wave reaching approximately $5.85, while the fifth wave is anticipated to push XRP beyond $8. This formation suggests a strong bullish continuation if XRP successfully breaks through the critical $3 level.
“This structure aims at $8+ levels with its 5th Wave shortly. It has started to get exciting,” the expert said.
If XRP trades at $8, its market cap would be approximately $462.21 billion, making it the second-ranked cryptocurrency just behind Bitcoin (BTC).
XRP price levels to watch
Another analysis by pseudonymous trading expert CasiTrades shared in an X post on February 5 suggested that XRP’s recent drop, which coincided with broader market sentiment, may represent its last low before a rebound.
Despite a prolonged sell-off extending beyond initial projections, the analyst noted that the overall technical outlook remains unchanged, with key downside support targets at $2.16, $1.87, and $1.53.
The analyst stated that XRP is in the fifth C wave within an ABC correction, forming a large Wave 2. If this is the final low, a massive Wave 3 uptrend could follow, potentially pushing XRP past its previous all-time highs with minimal resistance.
Beyond the technical aspects, XRP investors also consider other fundamental factors that could impact the Ripple-affiliated asset. For instance, prices remain subdued amid reports that Ripple plans to flood the market with an $800 million XRP sell-off in February, which could trigger volatility.
XRP price analysis
At press time, XRP was trading at $2.50, down over 5% in the last 24 hours. On the weekly chart, the token has plunged more than 18%.
At its current price, XRP remains under bearish pressure, as it is trading below the 50-day simple moving average (SMA). However, the token remains bullish in the long term, as its price is still above the 200-day SMA of $1.27.
With a volatility of 11.77% and a relative strength index (RSI) of 41.38, the market appears neutral to slightly oversold.
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