XRP’s Growing Importance in the Cryptocurrency Space

XRP’s focus on fast, low-cost transactions has made it a leader in the digital currency sector. Currently, it ranks as the third-largest cryptocurrency by market cap.

In a recent development, President Trump announced a strategic crypto reserve that includes XRP, acting as a bullish catalyst for the market. This news sparked a positive surge; however, tariffs imposed on China, Canada, and Mexico on March 4 led to a market-wide selloff, causing XRP to drop in price.

Despite being down 15% from its high of $2.94 on March 2, XRP demonstrated resilience and recovered from a dip to $2.26. As of now, XRP is trading at $2.49, showcasing a daily gain of 5.67% and a year-to-date return of 20.41%.

AI Models Predict XRP Price

Finbold consulted its AI price prediction tool to gauge potential XRP prices by month-end. The four queried large language models suggested an average price target of $3.16, indicating a potential 26.5% increase.

The most optimistic outlook comes from Anthropic’s Claude 3.5 Sonnet, forecasting a rise to $3.85, suggesting a 54% upside. Claude noted a strong uptrend based on the digital asset’s 200-day small moving average being significantly above its 50-day counterpart, although it warned of short-term volatility.

OpenAI’s ChatGPT-4o observed a Golden Cross on XRP’s chart as a positive signal, setting a target of $3.20, while GPT-40 Mini provided the lowest prediction of $2.75, attributing market positivity to recent improvements in regulatory clarity.

Analyst Perspectives on XRP

Technical analysts are split regarding XRP’s immediate price direction. Crypto expert Ali Martinez warned of a potential head and shoulders pattern that could drop prices to $1. Conversely, analyst Dark Defender, using Elliott Wave analysis, identified $1.99 as a critical support level and suggested a price surge to $3.39, potentially even $5.85, if XRP maintains closes above $2.33.

There is also mention of a rally to the $2.85 to $3.35 range if XRP exchange-traded funds (ETFs) receive approval.

Traders should also consider supply and demand factors as Ripple is planning a $795 million sale this month, which may pose short-term downside risk.