XRP Price Forecast: Why a 50% Correction Could Spark a Surge to $5

XRP price prediction is gaining attention this week as analysts eye a possible bounce following a sharp correction. After retracing nearly 50% from recent highs, XRP appears poised for a potential upward breakout that could target the $5 mark.

The recent dip in XRP’s price action aligns with a classic 50% Fibonacci retracement level, offering traders a potential accumulation opportunity. Historically, such corrections often serve as healthy pullbacks within larger bullish trends, allowing for renewed buying interest and strong rallies.

At the time of writing, XRP is consolidating above key support levels around $0.45–$0.50. This range has attracted buying interest in the past and is seen as a critical zone where bulls could regroup for a fresh leg higher. Technical indicators also reflect building momentum, with the Relative Strength Index (RSI) rising after entering the oversold zone and MACD signaling potential for bullish crossover.

From a broader market perspective, the overall sentiment in the cryptocurrency sector remains cautiously optimistic. Despite regulatory hurdles and intermittent volatility, investor demand for major altcoins like XRP continues to grow, especially as traditional finance institutions increase their exposure to crypto assets.

This week, chatter surrounding an upcoming bullish catalyst is heating up. Crypto analysts point to potential court rulings, strategic partnerships, and network upgrades that could drive further interest in XRP. Should these fundamental developments align with a technical breakout, the upside could be significant.

One of the key arguments for a bullish case is the formation of a reversal pattern on the weekly chart. Traders have identified a potential inverted head-and-shoulders pattern — a classic bullish setup — which projects a near-to-medium term price target of $5. However, confirmation of this pattern would require a strong close above the neckline resistance around $0.65—$0.70 zone.

Meanwhile, short-term resistance levels to watch include the 200-day moving average near $0.60 and psychological levels at $0.75 and $1. Breaking above these would suggest increasing bullish conviction and open the door to even higher targets, potentially testing multi-year highs once again.

Despite this optimistic outlook, traders are urged to proceed with caution. Crypto markets remain highly volatile, and false breakouts are common. Effective risk management strategies, such as stop-loss placements and position sizing, should be in place to mitigate downside risks.

On-chain data also offers promising signs, with recent whale accumulation trends indicating renewed confidence among large holders. Wallet addresses holding significant XRP balances have shown steady inflows, often a precursor to substantive price moves. Additionally, total active addresses and transaction volumes on the XRP Ledger are rising, hinting at increased network activity and growing utility.

As the week progresses, XRP traders will closely monitor price action around the current support and resistance zones. Volume spikes and candlestick formations will offer further clues about market sentiment and direction. Technical analysis, when combined with fundamental developments, could help paint a clearer picture for what lies ahead.

Looking ahead, higher time frame bullish setups suggest that a move toward $5 remains on the table, especially if XRP maintains support above the recent lows and breaks above intermediate hurdles. For those considering entry, the current 50% correction zone might represent an attractive lower-risk opportunity within the broader uptrend narrative.

Related: $2.3 Trillion Liquidity Shock: Franklin Templeton Says XRP Is Next in Line for Massive Inflows

For now, patience and vigilance remain essential. XRP’s next move hinges on whether buyers can capitalize on the recent decline and propel the token into a full-fledged bullish recovery.