Could XRP Surge Above $5 as Wave 5 Approaches?

XRP is hinting at a new wave in its market patterns as it nears a crucial breakout level. Analysts observe significant whale movements and bullish signals suggesting a potential rise.

Signs of a New Wave Structure

Analyst Dark Defender highlighted that XRP completed its Wave 4 correction according to Elliott Wave Theory, with its last move ending around $1.88, aligning with the 161.8% Fibonacci extension.

If XRP breaks through a descending resistance line and surpasses $2.22, it could initiate Wave 5, according to Defender. He stated:

“XRP has completed the Monthly Wave 4 Structure.
Now we see the signs of Wave 5 as initial steps.
After breaking the yellow trend resistance, things will quickly escalate above $3.01.
Have an excellent weekend. pic.twitter.com/ProZaYz6z8”

This breakout could lead to targets near $5.85 based on further Fibonacci projections.

Bullish Patterns on Shorter Timeframes

On the 4-hour chart, XRP displayed positive strength with a breakout from a bullish pennant formation, recovering from the $2.15 support zone. Analysts suggest targets between $2.30 and $2.60 are feasible.

On-Chain Data Shows Whale Distribution

Data from Santiment shows significant sell-offs by whale wallets, with over 2.2 billion XRP offloaded recently. Moreover, Binance XRP reserves declined to 2.7 billion, marking the lowest in over a year.

These large distributions reflect caution among major holders and hint at broader market implications.