XRP Price Prediction: Can XRP Price Reach $4 in May? Analysts Watch Crucial Levels

Get the latest on the XRP price prediction as traders eye potential moves in May. The crypto market shows signs of recovery, but analysts point to specific levels XRP must hold to sustain upward momentum.

XRP Price May Show Resilience

XRP price saw an uptick recently, aligning with improving broader macroeconomic sentiment. On May 7, XRP price was up around 2%, partly attributed to positive news regarding potential US-China trade discussions. While this provided a boost, the question remains: can XRP price May continue this trend and potentially target higher levels?

At the time of writing, XRP price sits above the $2.00 mark. Market participants are closely monitoring key support levels that analysts believe are essential for a sustained recovery towards previous highs.

What XRP Analysis Reveals: Whale Moves and Indicators

Recent XRP analysis suggests the current price movement might have deeper roots than just short-term market reactions. Santiment data indicates a steady increase in the supply held by addresses owning between 1 million and 10 million XRP tokens. These large holders now control 9.44% of the total supply, a 1.2% rise since the beginning of the year.

This accumulation by whales during recent price dips around $1.60 suggests they are positioning for future gains. This behavior can help establish a price floor and reduce selling pressure.

Looking at derivatives data, XRP open interest saw a modest increase to $3.65 billion, hinting at slightly growing trader confidence. However, a noticeable 17% drop in trading volume to $3.9 billion indicates lower conviction as traders await a clearer price direction.

Crucial XRP Support Levels to Watch

For XRP price to potentially revisit or surpass its previous all-time highs above $3.40, holding specific support levels is critical. Data shows XRP price bounced off the 200-day Simple Moving Average (SMA) at $2.08 on May 6. This level is significant as it also aligns with the election volume-weighted average price (VWAP) and the monthly rVWAP.

Analyst Dom highlighted $2.08 as a key area that needs to be defended. Failure to hold this level could see XRP pull back towards $1.90. For an immediate trend reversal and continuation of gains, regaining the $2.12 level is seen as necessary.

Another analyst, Egrag Crypto, emphasized that XRP price should not close below $1.83. Pseudonymous analyst XForceGlobal maintains a bullish outlook for XRP as long as it remains above the multimonth low of $1.60 reached in April, suggesting that new all-time highs could be imminent if these conditions hold.

Can XRP Price Reach $4?

While reaching $4 in May presents an ambitious target, analysts believe a move towards previous highs is possible if key support levels hold and positive market sentiment continues. The current price action, coupled with whale accumulation, provides a foundation. However, maintaining momentum requires breaking through resistance levels and seeing an increase in trading volume to confirm conviction.

Summary

XRP price is showing signs of strength, buoyed by macro factors and whale accumulation. Analysts are closely watching critical XRP support levels, particularly around $2.08 and $1.83. Holding these levels is seen as essential for a potential move towards or beyond previous highs. While the path to $4 in May faces hurdles, the current technical setup and underlying accumulation offer potential for continued upside if market conditions remain favorable and key support holds firm.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.