XRP News Today: XRP Rebounds 5% From Local Low, Eyes 1,700% Gain

XRP is currently trading at $2.34, showing resilience after rebounding from a local low of $2.22 earlier this week. Analysts have outlined multiple scenarios that could drive the cryptocurrency higher, with key resistance at $2.42 that could trigger a breakout to $2.60.

Crypto analyst Egrag Crypto has provided three different price projections based on historical cycles. The most optimistic scenario suggests XRP could reach $46 if it mirrors the first market cycle pattern. In the first cycle, XRP dropped below the 21 Exponential Moving Average and fell 5,550%. The token then retraced back to the 21 EMA before dropping another 2,500%. For the second cycle scenario, the analyst projects a $12 target. This cycle saw XRP drop below the 21 EMA with a 150% breakdown, followed by a retracement and another 500% fall. The current third cycle shows XRP has dropped below the 21 EMA with potential for a 430% rise. The analyst notes the token is retracing back to touch the 21 EMA. Egrag Crypto suggests averaging the projections gives roughly 1,500%, pointing to a $30 target. However, his personal estimate sits at $27.

The analyst has raised the possibility of XRP gaining 1,700% to reach $27 in just 60 days. This projection is based on patterns from October 2017 when XRP exploded 1,772% over 63 days to set a new all-time high. Breaking the $3 mark remains the ultimate target in preparation for a rally to double digits. This level represents the high from the February 24 candle this year.

On-chain data reveals that over 70% of all capital stored in XRP came into the network during the past six months. This new money entered alongside the high prices recorded during this period. The XRP Realized Cap has witnessed an explosion alongside the recent bullish push in the asset’s price. This massive capital influx occurred near the top, putting many investors in a delicate position.

XRP faces a critical resistance level at $2.42 that has been tested multiple times. The daily chart shows a consolidation phase following a strong upward rally in early May when the price surged past $2.50. The RSI indicator sits just above 50, showing neutral momentum. The MACD displays a bearish crossover but appears to be flattening, suggesting indecision in the market. A successful breakout above $2.42 could pave the way for a retest of the $2.60 zone. Repeated rejections at this level may signal sustained consolidation or a potential dip towards $2.20-$2.25. Volume has remained steady, indicating XRP might be preparing for a directional move. The $2.42 level previously acted as support-turned-resistance during XRP’s retracement.

Daily active addresses and social volume have shown consistent strength throughout May. This indicates sustained user engagement and rising investor interest. A spike in social volume preceded the price surge earlier this month, hinting at growing community traction. Exchange inflows saw an uptick around May 9, coinciding with the price rally. Despite minor pullbacks, XRP’s ability to maintain elevated activity levels suggests underlying demand. However, network activity has declined over 90% since the March peak when active addresses hit their highest point. XRP continues to trade around $2.34 with buying pressure remaining steady despite the recent consolidation period.