XRP Price Prediction: Elliott Wave Analysis Suggests a Rally to $12

The price prediction landscape for XRP is currently being shaped by a combination of technical signals, whale activity, and looming legal developments, specifically the latest Ripple SEC lawsuit news.

As of Tuesday, May 6, XRP is trading at $2.18, navigating a narrow band between $2.13 and $2.17. Despite recent losses and subdued sentiment in the derivatives market, technical patterns and long-term forecasts suggest a potentially bullish picture.

Elliott Wave Analysis Predicts a Rally to $12

According to crypto analyst EWCycles, XRP may be forming the third wave of an Elliott Wave formation, which could propel the token as high as $12 between 2025 and 2026. This forecast represents a possible 2,900% increase from recent lows.

XRP is eyeing a strong upward continuation, aiming for a long-anticipated surge toward the $12 mark. Source: EWT via X

EWCycles highlighted that XRP is forming higher highs and higher lows within an emerging ascending channel. “The technical setup points to a long-term uptrend, especially if XRP maintains support above $2,” the analyst stated.

This XRP price prediction is further supported by a falling wedge pattern visible on the four-hour chart, often viewed as a bullish reversal indicator. A breakout past $2.36 could trigger a short-term 7% rally, with the next target around $2.59. However, if the $2.13 support level is lost, downside pressure could push the XRP value toward $1.96.

Whale Accumulation Signals Growing Confidence

Data from the blockchain reveals that major players are accumulating significant amounts of the token. Over the past month, wallets holding between 10 million and 100 million XRP have amassed 440 million tokens, signaling strong confidence among institutional holders.

Whales have snapped up 630M XRP in a month, signaling strong bullish expectations ahead. Source: Trader Edge via X

“Whales usually prefer to accumulate in quiet markets. It’s a sign they’re positioning ahead of a potential rally,” said a Santiment analyst.

Still, data also shows a recent decline in large XRP transactions—particularly those exceeding $100,000 and $1 million—suggesting a pause in aggressive accumulation. Meanwhile, derivatives activity suggests caution, as $4.89 million in long positions were liquidated within 24 hours, reflecting waning bullish conviction in the short term.

Technical Indicators Support a Bullish Bias

On the daily chart, XRP remains 15% below the $2.50 resistance level, which represents the 50% Fibonacci retracement from its decline off a $3.40 high. Yet, indicators like the Relative Strength Index (RSI) above 54 and MACD green histogram bars both support a near-term bullish outlook.

XRP is breaking out of its yo-yo phase with a bullish Reverse Dragon pattern that could launch it past $3 in the coming weeks. Source: MetaShackle on TradingView

Market analysts are keeping a close eye on $2.35 and the upper resistance band between $2.45 and $2.50. A daily close above these levels could trigger renewed momentum toward the psychological $3 mark, potentially bringing the Ripple market into a new phase.

Legal Developments Could Define XRP’s Next Move

At the center of Ripple news is the prolonged legal dispute with the U.S. Securities and Exchange Commission. The XRP lawsuit has seen another setback, with the SEC extending its deadline to appeal the court ruling until June 15, 2025. Just two days later, on June 17, the agency is expected to decide on Franklin Templeton’s proposed XRP ETF, leading to speculation about coordinated timing.

Bill Morgan, a lawyer closely following the case, called the sequence of events “potentially strategic.” He noted that this may be the beginning of the end for the Ripple SEC lawsuits.

The potential dismissal of the appeal or an ETF approval could act as a powerful catalyst for XRP price movement. “A resolution would not only remove regulatory overhang but also unlock real upside for the Ripple currency price,” said Dan Tapiero of 10T Holdings.

Industry voices claim that favorable Ripple lawsuit updates could trigger a rally of up to 3x, with the XRP value responding swiftly to restored confidence in the token’s regulatory clarity.

XRP Faces a Mixed Short-Term Outlook

Despite long-term optimism, short-term signals remain mixed. XRP has struggled to break above the $2.25 resistance and continues to face pressure from bearish divergence patterns on the daily chart. Should XRP drop below the $2.15 support zone, traders could see the next line of defense at $2.00 or even $1.95.

XRP was trading at around $2.18 at press time