XRP, the native cryptocurrency of the Ripple network, is currently trading at $2.51 as of February 5, 2025, experiencing a slight 3.2% drop. The altcoin formed a low of $2.55 on its daily chart, but a price rebound above $2.70 could signal a trend reversal, offering a potential bullish outlook for the cryptocurrency.

Key Levels to Watch for XRP

As traders continue to navigate the crypto market, the key price levels for XRP remain highly important. With the market stabilizing after concerns about trade wars sparked by President-elect Donald Trump’s tariff threats, optimism is building around XRP’s potential breakout into higher price territories.

However, recent price action shows XRP has faced strong resistance at $3.30, resulting in a significant pullback to as low as $1.76 on February 3. While the cryptocurrency did experience a solid rebound from the $2.00 demand area, bearish sentiment still looms, creating uncertainty around its immediate price movements.

Popular crypto analyst Nishant Bhardwaj has been closely monitoring XRP’s price action and suggests that XRP needs to reclaim the $2.70 level to spark further upside momentum. Until that happens, the altcoin could remain under pressure, with the next key support level at $2.50. A breakdown below $2.50 might bring XRP’s price closer to the $2.00 and $1.60 demand zone, which could signal further losses.

XRP’s Current Market Sentiment

The current sentiment around XRP’s price action is influenced by a complex mix of factors, including liquidation heatmaps and market liquidity. According to CoinGlass, XRP’s immediate support at $2.50 is critical for maintaining a bullish outlook. A wall of bid liquidity is forming below this level, and traders expect a possible retest of this support in the short term. A liquidity grab at these levels may provide a short-term price reversal if XRP holds above the $2.50 mark.

What’s Next for XRP in 2025?

Despite the recent volatility and price pullbacks, some analysts remain bullish on XRP’s future. Dark Defender, a well-known anonymous crypto analyst, has outlined an ambitious forecast for XRP using the Elliott Wave Theory. Based on the analyst’s insights, XRP could target an intermediate cycle price of $5.85 in the short term, with a longer-term price target of $18.22.

Dark Defender’s analysis dates back to July 2023 when XRP was trading between $0.40 and $0.50, and the prediction of $5.85 and $18.22 targets still stands, with the altcoin currently in the fourth wave of its intermediate cycle. The upcoming fifth wave could push XRP toward these lofty goals if the market sentiment continues to improve.

Additionally, fellow analyst XForceGlobal supports a similar outlook. XForceGlobal notes that XRP is in the fourth wave of its intermediate cycle, anticipating a fifth wave that could push the price toward the $5 to $10 range. With a potential 50% bounce, XRP might complete its fifth wave if the low of the cycle is held, setting the stage for further gains.

Can XRP Reach $18?

While the price targets of $5.85 and $18.22 are certainly ambitious, they align with the technical patterns seen in XRP’s previous cycles. Should XRP reclaim its previous highs and break through key resistance levels, these targets could become achievable in the long run. As highlighted by analysts, the price movement needs to stay above key support levels to maintain the bullish momentum needed for these targets.

Conclusion

XRP’s performance in the early days of 2025 shows promise, especially with its recent recovery from the $2.00 zone. While it faces bearish pressure in the short term, a reclaim of the $2.70 level could spark a trend reversal and provide the platform for more substantial price gains.

Despite the uncertainties in the market, XRP’s price outlook remains intriguing for both short- and long-term investors. With bullish targets reaching as high as $18.22, the next few months will be critical in determining whether XRP can fulfill its price potential.

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