Ripple Wave 5 Starting? Breakout Could Send XRP Above $5

XRP is showing signs of a possible new wave in its market structure. Technical indicators and chart formations are aligning with a potential upside move.

Analysts are watching for confirmation as price action approaches critical resistance levels.

Signs of a New Wave Structure

Analyst Dark Defender noted that XRP has completed its monthly Wave 4 correction based on Elliott Wave Theory. The last move in the ABC correction ended near $1.88, aligning with the 161.8% Fibonacci extension. This level often marks the end of corrective phases.

The asset is now approaching a descending resistance line. A confirmed breakout above this trend, combined with a move past $2.22, could mark the beginning of Wave 5. According to Dark Defender,

https://twitter.com/DefendDark/status/1994358101718221289?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank

This level corresponds to the 70.2% Fibonacci retracement. A further breakout could bring long-term targets near $5.85 into focus, based on the 261.8% Fibonacci extension.

Bullish Patterns on Shorter Timeframes

XRP has also shown strength on the 4-hour chart. Analyst CryptosBatman shared that the asset recently broke out of a bullish pennant formation. The move followed a recovery of the $2.15 support zone, which had previously acted as resistance. The breakout suggests increased buying activity. If this holds, near-term targets between $2.30 and $2.60 are in view.

Another analyst, ChartNerd, pointed out that XRP is forming a rectangular bull flag. This pattern shows the price consolidating within a horizontal range after a sharp move up. A breakout above the resistance zone would project a target near $24 based on the flagpole’s height.

On-Chain Data Shows Whale Distribution

On-chain data from Santiment reveals large selling activity by whale wallets. Addresses holding between 1 million and 10 million XRP offloaded over 2.2 billion tokens in the past month. According to Steph Is Crypto, this was the largest drop since March 2023. Recent updates also show that 460 million XRP were sold in just four days. Whales moved nearly 1.5 billion XRP throughout the month, including 180 million earlier this week.

Despite these movements, the token has seen a mild rebound in recent days. However, whale holdings remain near their lowest levels. Binance reserves have also dropped to 2.7 billion XRP, the lowest in over a year. Around 300 million XRP have left the platform since October. These shifts reflect large-scale distribution and possible caution among major holders.

The post Ripple Wave 5 Starting? Breakout Could Send XRP Above $5 appeared first on BitcoinLinux.