XRP is staging a comeback after a sharp selloff, despite ongoing market uncertainty. The cryptocurrency has struggled following a broader crypto downturn, triggered by the rollout of tariffs by the Donald Trump White House.
Despite these setbacks, analysts maintain a bullish long-term outlook for XRP, mapping out a trajectory that could see the asset rallying toward $5.85 and beyond if key technical levels hold.
Technical analysis points to a bullish breakout
XRP’s price structure suggests a clear bullish trajectory, with multiple indicators supporting the case for a rebound.
In a projection guided by Elliott Wave Theory, crypto analyst Dark Defender, in a recent X post on February 3, noted that XRP is currently in Wave 4 of its Intermediate Cycle, setting the stage for a Wave 5 breakout toward $5.85.
A broader bullish outlook also remains in place, with Primary Cycle projections pointing to a long-term target of $18.22. If buying momentum increases, XRP could break through key resistance levels, triggering an extended uptrend.
Adding to the bullish outlook, analyst Dom compared XRP’s recent price crash to two major historical selloffs—the SEC lawsuit dump in December 2020, which saw XRP plunge 70.61%, and the March 2020 COVID-19 crash, where XRP dropped 55.37% alongside global markets.
In both cases, these declines marked ‘generational bottoms,’ paving the way for significant rebounds. Dom suggests that XRP’s latest drop, driven by Trump’s tariff policies, could also be setting up a similar accumulation phase before a sustained recovery.
Regulatory developments and market sentiment set to boost XRP
Beyond technical factors, regulatory developments could play a decisive role in XRP’s trajectory. The Securities and Exchange Commission (SEC) is expected to rule on the long-running lawsuit against Ripple, with growing speculation about a potential settlement in Ripple’s favor.
Adding to the anticipation, the SEC is also reviewing an application for an XRP exchange-traded fund (ETF). If approved, the ETF could attract institutional capital, providing a significant boost to XRP’s liquidity and market demand.
XRP price analysis
At press time, XRP is trading at $2.62, marking a 36% rebound from its recent low of $1.90 on February 3. Despite gaining 10% in the past 24 hours, the cryptocurrency remains down nearly 17% over the past week, highlighting continued market volatility.
For now, XRP is attempting to reclaim the critical $3 psychological level, which could define the next phase of its recovery. A successful breakout above this threshold could accelerate bullish momentum, opening the door for a rally toward $6 and beyond.
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Source: https://finbold.com/can-xrp-hit-6-amid-the-markets-current-recovery-wave/