XRP’s May 2025 Outlook: Elliot Wave Points to Explosive Move—Or Another Wall Street Letdown?

XRP traders brace for a make-or-break month as Elliot Wave theory hints at a potential breakout—just as institutional money starts circling the ’toxic asset’ it swore to avoid last cycle.

Bullish pattern or bear trap? The 5-wave structure suggests a rally towards $3.50 if resistance breaks, while failure could see a retest of $0.40 support. Either way, hedge funds win—they’re shorting volatility both ways.

Technical indicators flash conflicting signals: RSI shows room to run, but whale wallets are quietly offloading. Meanwhile, the SEC’s latest delay on the Ripple case proves regulators move slower than Bitcoin in 2011.

One thing’s certain—retail will FOMO in at the top again while VCs dump their bags. The more things change...

Ripple’s native token, XRP, has been moving sideways in recent days, with analysts watching closely for signs of a breakout or breakdown. While the broader crypto market is experiencing some selling pressure, XRP has managed to hold its key support levels — but its future direction remains uncertain.

Short-term Price Analysis

On the short-term chart, XRP appears to have formed a low around April 7th. However, all subsequent rallies from that point have been corrective, featuring messy, overlapping, three-wave moves rather than clean impulse waves.

Support at $2.11 has held so far, with additional support at $2.08 and $2.14. Price briefly broke a minor Fibonacci support recently but recovered quickly without sustaining losses. The market continues to form higher highs and higher lows — a positive sign amid uncertainty.

There’s a tentative Elliott Wave scenario where XRP might be forming a diagonal pattern to the upside, although it’s not a particularly reliable setup given the overlapping, jagged structure. A decisive breakout above the descending trendline from the April 30th low (around $2.12) could signal the start of an internal third wave higher.

Key resistance levels to watch include $2.33 and $2.46. A clean break of these could spark fresh bullish momentum.

Ripple Unlocks 1 Billion XRP: What Does It Mean?

Ripple recently unlocked 1 billion XRP from escrow. While increased supply traditionally pressures price lower, there’s nuance to consider. The market reaction depends on how Ripple deploys these tokens.

If used for strategic acquisitions — such as the rumored bid for Circle — it could be bullish for XRP, injecting real utility and revenue into the ecosystem.