XRP Price Forecast: Can Ripple Reach $4 This Month?

The XRP price has gained notable attention recently as it tries to reclaim momentum in the crypto market. On May 7, XRP rose by 2%, driven by optimism surrounding potential U.S.-China trade negotiations. This upward trend has prompted analysts to focus on critical price support areas that could determine whether XRP can continue its rally.

At the time of review, XRP remains above the $2.00 level, signaling resilience amid broader market fluctuations. For analysts, this psychological and technical threshold serves as a litmus test for potential price growth in the short term.

Growing Whale Accumulation Signals Confidence

Market behavior suggests that the recent price movement of XRP may be supported by more than just temporary macroeconomic optimism. Notably, on-chain metrics reveal increasing interest from large investors, commonly referred to as whales. These entities, which hold between 1 million and 10 million XRP tokens, have collectively expanded their holdings since the beginning of the year. Recent data shows they now control 9.44% of the total XRP supply—representing a 1.2% increase since January 1.

This trend indicates that larger holders haven’t been selling into the dip, especially when XRP dipped to $1.60. Instead, they’ve been buying during periods of weakness, potentially adding a cushion to the market and encouraging retail participation by signaling long-term confidence.

In addition, XRP’s open interest has slightly increased by 0.32% to $3.65 billion over the past 24 hours. This uptick demonstrates a minor increase in trader engagement and available capital. However, the concurrent 17% decline in trading volume to $3.9 billion may imply that traders remain hesitant to fully commit without clearer directional momentum.

Path Toward $4: Can XRP Break Through Resistance?

Market analysts remain focused on whether XRP can return to levels last seen during its massive historical surge, where it surpassed $3.40. While those highs might seem ambitious, a revisit is not out of the question if XRP maintains key support zones.

Recent analysis indicates a bounce occurred from the 200-day Simple Moving Average (SMA) at $2.08 on May 6. The asset climbed as high as $2.17 intraday, which coincides with its 50-day SMA. These overlapping technical indicators form important converging zones, which often act as strong support in bullish scenarios.

Some market participants have stressed the importance of preserving this area. One analyst highlighted that failing to stay above the 200-day SMA could result in a decline toward $1.90. They emphasized a need for XRP to recover the $2.12 level to demonstrate a definitive trend reversal and resume upward momentum.

Fellow analysts echoed similar sentiments. One noted that XRP should not register a daily close under the $1.83 mark, portraying it as a structural level that separates bullish continuation from potential downturn. Another trader pointed out that as long as the token holds above the multimonth low of $1.60, bullish market sentiment remains intact—inferring that the opportunity for new all-time highs remains on the table.

While enthusiasm builds around XRP’s recovery prospects, market observers continue to watch for aligned volume patterns and stronger momentum confirmation. A meaningful breach above the current resistance zones could open the path toward the all-important $4 mark. For this, investor sentiment, macroeconomic alignments, and whale accumulation will all play a critical role.

Related: Expert Advice: Sell XRP If You’re Confused

The XRP community finds itself at a potentially pivotal moment, and many eyes are on the token to see whether it consolidates enough strength to surpass previous highs or faces renewed resistance. As market conditions evolve, XRP remains one of the most closely watched assets for signs of broader trend shifts in the digital asset space.