XRP Holds Above $2 Amid Legal Resolution, Eyes $2.80 Breakout

XRP, the cryptocurrency associated with Ripple, has been maintaining a steady position above the $2 mark, with analysts predicting a significant breakout that could push its price past $2.80. This optimism comes amidst a period of consolidation following a recent rally and the latest developments in Ripple's legal battle with the Securities and Exchange Commission (SEC).

The steady volume and the potential resolution of the lawsuit have contributed to a bullish sentiment among market participants. According to a detailed analysis by a crypto analyst, XRP's price movements are being closely monitored using the Elliott Wave theory. This theory suggests that market cycles follow specific patterns, which can be used to predict future price actions. The analyst has identified that XRP is currently in Wave 4 of a larger cycle, with Waves 1 to 3 representing a strong upward move. Wave 4 triggered a major correction, but if completed, the cryptocurrency's price could push higher into Wave 5, reaching targets between $2.80 and $3.00. This move would create a false breakout, taking out liquidity above recent highs.

Historically, XRP has experienced rapid spikes followed by immediate declines at previous cycle tops. In December 2013, it climbed to $0.0614 before declining to $0.00281. A comparable shift took place in December 2014, when XRP increased to $0.02803 before rapidly dropping. The pattern repeated in January 2018, as XRP reached $3.80 prior to a significant decline. Recently, XRP hit $1.96 in April 2021 and $0.95 in July 2023, but experienced swift pullbacks on both occasions. These swift reversals indicate previous market peaks did not have lasting consensus on price points, resulting in quick sell-offs.

Unlike previous cycles, XRP has maintained its position above $2 for nearly three months. This prolonged stability is considered a bullish indicator. The longer price spends time at a level, it’s always just reflective of how much market participants agree on that price. Despite repeated rejections at the $2.6 to $2.8 resistance range, XRP has not collapsed as it did in past cycles. Instead, buyers continue to absorb selling pressure, supporting prices near $2.43. This market behavior increases the chance of a breakout.

Past XRP cycles have been marked by high trading volume during price spikes, followed by a rapid drop-off as selling pressure increased. This time, volume remains steady, suggesting that traders are still engaged at current prices. If XRP were forming another cycle top, volume would likely have faded by now, leading to a sharp price drop. Instead, demand appears to be holding up, which could provide support for another move higher.

At the same time, XRP’s price movement occurs as Ripple approaches resolving its prolonged legal battle with the U.S. Securities and Exchange Commission (SEC). Ripple has come to an agreement with the SEC to withdraw its cross-appeal in the legal case. The legal battle initially resulted in a $125 million fine and restrictions on institutional XRP sales. However, with the new settlement, Ripple will pay a reduced fine of $50 million, and the SEC has agreed to request the removal of the sales restriction.

With XRP maintaining its current price levels and legal uncertainties clearing up, analysts continue to watch whether the asset can break above $2.80 in the near future. The analyst also warns of a potential flash crash in April 2025, which could liquidate overleveraged traders and shake out weak hands. This deep correction is expected to hold above the lower trendline, targeting a green area between $1.6 and $1.4. Despite this potential downturn, the analyst anticipates that the correction may be short-lived, with a rebound expected shortly thereafter. The breakout is expected to start in Wave 7, potentially leading to a price discovery for XRP and reaching a likely target of $3.00 before skyrocketing to new highs above $3.6.

Wave 7 is predicted to begin in May 2025, with the breakout anticipated to take out previous all-time highs for the altcoin, surpassing its $3.84 price record in 2018. Despite a sharp price crash from its $3.00 high earlier this year, the cryptocurrency remains resilient, and analysts are closely watching its next move. The XRP price is now trading at $2.44 after increasing by 4.56% in the past week. Analysts continue to take a bullish stance on the XRP price outlook, predicting a potential breakout in the short term. An X (formerly Twitter) market expert forecasts that the asset could surge to $3.4 soon, marking a 39.34% jump from its market price. This optimistic outlook suggests that despite the potential flash crash, many analysts remain confident in XRP’s long-term prospects. The next major hurdle for the bulls might be $2.80, with stronger resistance existing between $2.65 to $2.80. Another notable resistance point sits at $2.6650 in the near term.