XRP Price Prediction: XRP Shows Strong Bullish Potential as It Holds Above Key Support

XRP is showing strong bullish potential as it holds above a key support level, with analysts pointing to a missing fifth wave that could drive its next major breakout. By Lucas Outcault.

XRP price is showing strong potential for a bullish breakout as it continues to hold above a key support level, and institutional investors are making significant moves in the market.

What Happened: XRP has been unfolding in an Irregular Expanded Flat ABC Count since December 2024, signaling the potential for a final fifth wave to propel the token to new highs.

According to crypto analyst CoinKids, who shared his thoughts on X on Thursday, XRP is currently in wave four of the count.

“We are currently in wave (4), which is an Irregular Expanded Flat ABC Count. This Count is typically signaled by a 20-week Exponential Moving Average (EMA) hold, which indicates strength from buyers ahead of major upward moves. We can also see that the Relative Strength Index (RSI) and past retail sentiment shifts support the view that we are still in a Countertrend Correction Phase.”

A minimum target of $4 is set if the token manages to breakout above its January 2025 local high. But the analyst sees the possibility of the token going even higher depending on the momentum.

“If we see the price of XRP breakout above January’s high, we can set a minimum target at $4. However, the price action might take us even higher if the volume and momentum increase.”

The analyst further noted that several major financial institutions are now investing in crypto. Some of the biggest names in the industry include BlackRock (NYSE:BLK) with $9.6 trillion in AUM, Vanguard with $8.1 trillion, Fidelity, UBS (SIX:UBS), Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Morgan Stanley (NYSE:MS).

“As we can see, major institutions are accumulating cryptocurrencies, which could propel the market to new highs. Moreover, the Crystal Ball indicator, which tracks the global M2 money supply, signals that liquidity will return to the market after December’s outflow.”

Historically, surges in liquidity have coincided with significant crypto bull runs, making XRP a prime candidate for a breakout from its current trading range.

“If we look back in history, we can see that major liquidity injections into the market have always been followed by strong bull runs in the crypto market. This time, we can expect to see a similar scenario play out as the institutions pour money into cryptocurrencies.”

Despite the bullish setup, it’s crucial for XRP to maintain the 20WEMA to continue its upward momentum. Otherwise, a deeper correction could emerge, potentially aiming for the $1.64 level.

But with the strong technical signals and the increasing interest from institutional investors, XRP appears poised for its fifth wave surge, setting the stage for what could be one of the biggest rallies of the token yet.