Can XRP Gain Momentum to Break $5 & Sustain Its Rally in 2025?

• XRP breaks $2.74 support and hits $3.29 before retracing to $3.16 in a bullish trend.
• RSI at 70.56 signals overbought, and MACD shows bullish momentum with buyers in control.
• Despite a 7.55% drop in open interest to $7.43B, bulls lead due to long liquidation dominance.

XRP is making waves in the crypto market. At press time, the digital asset was trading at $3.16 after experiencing a slight drop of 3.92% from its recent high of $3.29. Nonetheless, XRP is still bullish, and traders are looking to achieve the $4-$5 range in the next few days. As market participants consider their next step, all eyes are now on whether the price action will continue to push higher before March.

Source: X 

XRP Price Action: Breaking Through Barriers

The recent breakout of the descending channel suggests that the XRP has regained the bullish momentum. XRP rose above the crucial $2.74 barrier and used it as a support level, which provides a strong base for further gains.

It traded as high as $3.29 early this week and still indicates upward movement despite a slight correction. The current pullback is a correction, letting buyers catch their breath and prepare for the next rally.

The daily chart also shows a series of higher highs and higher lows, which confirms the bullish formation of XRP. If the price holds above the $3 level, it may open up a path to the $4-5 level, which provides further confluence to the current bull trend.

Source: TradingView

Technical Indicators: Signs of Strength

On the daily RSI chart, XRP is in overbought territory at 70.56, indicating a potential short-term pullback, although the long-term outlook remains highly bullish. Also, MACD is in harmony with this analysis, as the MACD line has crossed above the signal line, and the histogram is rising continually. These are clear indications that the buyer is in charge, and the uptrend is incomplete.

Source: TradingView

Related: XRP Reaches $3, Targets New All-Time Highs Around $5

Market Sentiment: Caution Amid Optimism

However, there is a split opinion regarding the XRP price action. The open interest has been lowered by 7.55% to $7.43 billion, which means fewer speculative transactions. Nevertheless, the long-liquidation dominance ($12.91 million versus $2.59 million in shorts) shows that bulls remain eager to trade. This strengthens the ongoing rally, but traders are cautious.

Source: Coinglass

Conclusion

XRP price is looking strong and is backed up by technical indicators and bullish market structures. Some levels of overbought RSI and decreased open interest may act as a constraint on further price appreciation but the support at $3 and the breakout of $2.74 is a strong-phase indicator of further uptrend. Will XRP be able to maintain its bullishness and push past the $5 mark before the correction in March?

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