Market Overview for XRP/Tether (XRPUSDT)

Summary
• XRPUSDT formed a bullish engulfing pattern at 2.0743, followed by a strong rebound above 2.1000.
• RSI shows oversold conditions below 30, suggesting potential for a near-term bounce.
• Volume spiked during the 2.0743 low but dropped after the 2.1000 retest, signaling mixed conviction.
• Price broke above a descending trendline at 2.1127, suggesting a test of 2.1308 could follow.
• Bollinger Bands widened during the rally, indicating rising volatility and trend continuation potential.

XRP/Tether (XRPUSDT) opened at 2.0844 on 2026-01-04 12:00 ET, reached a high of 2.1695, a low of 2.0726, and closed at 2.1943 at 12:00 ET on 2026-01-05. The 24-hour volume totaled 66.54 million XRP, with a notional turnover of approximately $142.81 million.

Structure and Candlestick Formations

The 5-minute chart shows a clear bullish engulfing pattern forming near the 2.0743 support level, followed by a strong rebound above 2.1000. A double-bottom structure has emerged between 2.0743 and 2.0844, suggesting short-term buyers stepped in. A descending trendline from the 2.1308 high has been broken, opening the door for a test of the next resistance at 2.1504.

Moving Averages and Momentum

On the 5-minute chart, the 20SMA has crossed above the 50SMA, reinforcing the bullish bias. RSI bottomed below 30 at the 2.0743 level, signaling a potential bounce. The MACD crossed above zero during the rally, confirming renewed momentum.

Volatility and Bollinger Bands

Bollinger Bands showed a clear contraction as price approached the 2.0743 support, followed by a strong expansion on the breakout. Price is currently near the upper band at 2.1966, which suggests the move may continue but with a risk of overextension.

Volume and Turnover

Volume spiked during the 2.0743 low, but notional turnover dropped after the 2.1000 retest, indicating mixed conviction among buyers. The late-day rally above 2.1500 saw robust volume, confirming strong demand at higher levels.

Visual

Fibonacci Retracements

The 5-minute chart shows price retracing to the 61.8% level at 2.1024 and breaking above it. The daily chart indicates a 50% retracement of the previous major leg near 2.1127 has now been cleared, opening the path for a move toward the 61.8% level at 2.1308.

The market appears to have found short-term support at 2.0743 and may continue testing higher resistance levels over the next 24 hours. A break above 2.1504 could trigger further upside, but traders should remain cautious of potential pullbacks toward 2.1251 or 2.1127 as consolidation points.