XRP Surges 3% to $2.06, Elliott Wave Theory Predicts $20 Target

XRP, the cryptocurrency associated with Ripple, has seen a significant upward trend, currently trading at $2.06, reflecting a more than 3% increase. Analysts are utilizing Elliott Wave theory to predict future price movements. According to XForced Global, XRP's previous surge from $0.50 to $3.40 is considered Wave 1 of a larger bull cycle. The current phase, Wave 2, is seen as a corrective period where prices retrace before the next significant upward movement. This analysis suggests that XRP could dip to a "buy zone" between $1.00 and $1.70 before launching into Wave 3, potentially reaching as high as $20. If XRP achieves this target, its market capitalization could surge to an estimated $1.16 trillion, potentially making it the second-largest crypto asset after Bitcoin, surpassing Ethereum.

In the short term, traders are focusing on key resistance levels. XRP has already broken past significant resistance zones at $1.85 and $1.95 and is currently consolidating around $2.06. The next major test is at $2.11, which is the floor of a four-month trading range extending up to $2.60. If bulls can push above $2.11 with sufficient volume, XRP could rise to $2.41 and then retest $2.60, indicating a strong bullish move.

Several factors are contributing to the optimistic sentiment surrounding XRP. The pause on tariffs by the Trump administration has eased macroeconomic tensions, benefiting risk assets like cryptocurrencies. Additionally, Ripple's legal victory against the SEC has removed a significant overhang on XRP's future. Ripple's acquisition of Hidden Road, a prime brokerage platform, signals deeper institutional growth, further fueling bullish expectations.

Technical analysis on the 4-hour chart shows XRP breaking out of a symmetrical triangle, currently trading at $2.06. The move above the triangle resistance and the 50-EMA ($1.99) is bullish. The Relative Strength Index (RSI) is at 58.87 and climbing but not yet overbought. A close above $2.17 could propel XRP to $2.31-$2.48. Key support levels are at $1.99 (short term) and $1.86 (stronger demand). As long as XRP remains above $1.99, the short-term trend is bullish heading into the weekend.

However, traders should remain cautious. A drop below $1.70 could still occur before the next significant rally. All eyes are on the $2.11 breakout zone. If XRP successfully breaks above this level, it could surge to $2.60 and beyond faster than anticipated. The Elliott Wave analysis also suggests that XRP is in a bullish setup, with wave (5) projected to initiate soon. Analysts predict that if XRP breaches the $2.20 mark, it could reach between $5 and $6, similar to the 2021 breakout. A daily close above the key $2.00 level would affirm XRP's strengthening technical structure, encouraging more traders to seek exposure. If XRP accomplishes this, it could eye a push toward $5 in the coming months, setting the stage for an even more ambitious climb toward $20, as projected by Elliott Wave theory.