- XRP’s falling wedge signals a breakout, with targets set at $3.38 and beyond.
- Short squeeze potential could drive XRP’s price surge amid heavy short positions.
- Regulatory developments and market sentiment may shape XRP’s long-term growth.
The cryptocurrency market continues to evolve, with XRP capturing the attention of investors due to its recent price action and market dynamics. Analysts highlight three crucial factors that may influence XRP’s trajectory in the coming weeks.
XRP’s Falling Wedge Pattern and Breakout Potential
Crypto analyst Steph emphasizes that XRP is currently trading within a falling wedge pattern. Historically, this formation signals a potential bullish breakout. If XRP manages to close above $2.53, it could surge toward $3.38, presenting a significant price shift. Moreover, market movements suggest that a breakout above resistance could further drive bullish momentum.
Liquidation Heat Map Suggests a Short Squeeze
The Binance liquidation heat map reveals substantial liquidity in short positions. This concentration of short positions increases the likelihood of a short squeeze, which could trigger an aggressive price surge. As traders cover their short positions, the price of XRP may gain rapid upward momentum, making this a potential buying opportunity for investors looking to capitalize on market shifts.
Market Sentiment and Fear Index
The crypto fear and greed index currently reflects extreme fear in the market. Historically, such conditions have often signaled an advantageous buying window for investors. Fear-driven markets tend to undervalue assets, and strategic investors may find this an optimal moment to accumulate XRP before a potential price reversal.
#XRP: 3 REASONS TO GO ALL IN NOW!!!!!!!!!!!
— STEPH IS CRYPTO (@Steph_iscrypto) March 5, 2025
Watch asap! 👇https://t.co/UdoH93apRB pic.twitter.com/o4qzYE9GZN
Analysts Technical Analysis
Another key analyst, Dark Defender, reports that XRP has already broken the 4-hour resistance level. The next crucial barrier to surpass is $3.3999, which could pave the way for an all-time high. Additionally, the Relative Strength Index (RSI) has formed a Golden Cross, a bullish indicator suggesting continued upward momentum.
Key support levels remain at $2.22, while resistance levels stand at $3.3999 and $5.85. If XRP sustains its bullish structure, investors may witness a significant price increase in the near term.
Hi all, $XRP broke the 4-hour resistance.
— Dark Defender (@DefendDark) March 6, 2025
3.3999 must be broken, and the RSI has the Golden Cross, which is Bullish. Thus, XRP will soon be ready to proceed to an all-time high.
Supports: $2.22,
Resistances: $3.3999, $5.85
Enjoy! pic.twitter.com/1BFS4B6TqP
US Crypto Policy and Market Influence
Broader regulatory developments also play a vital role in XRP’s trajectory. Dark Defender outlines critical milestones in US crypto policy, including ETF applications, regulatory discussions, and direct mentions from government officials. These factors contribute to a growing institutional interest in crypto, potentially benefiting XRP in the long run.
XRP’s Market Performance
XRP is currently priced at $2.57, reflecting a 3.78% increase in the past 24 hours and a 14.86% gain over the last seven days. Its market cap stands at approximately $149.77 billion, reinforcing its strong presence in the crypto space.
