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.
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.
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.
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