Technical Breakout: XRP Clears $2.35 Resistance, Eyeing $2.70 Target

XRP surged past the $2.35 resistance on January 6, 2026, rising 12.6% to $2.41 before consolidating near $2.38. This move represents a nearly 30% year-to-date gain for the cryptocurrency. The rally triggered $25 million in XRP short liquidations and marked the token as one of the few high-cap digital assets with double-digit gains in this period. According to analysis.

The move above $2.35 is significant as it aligns with the 200-day exponential moving average (EMA), a level that had previously acted as a ceiling for much of the past year. If XRP sustains its position above $2.42, analysts project a path toward the $2.60–$2.70 range by February. Market data indicates.

XRP's market capitalization now stands at $144 billion, widening the gap with BNB and securing its position as the fourth-largest cryptocurrency. This rise comes amid broader market expansion, with the total crypto economy adding over $250 billion in value since January 1. As reported.

Why Did This Happen?

The recent geopolitical tensions in Venezuela, particularly the U.S. military operation capturing Nicolás Maduro, reignited demand for alternative assets. This event fueled capital rotation into the crypto market during a weekend when traditional financial venues were closed. According to analysis.

Institutional demand is also playing a role, with steady inflows into XRP ETFs and falling exchange balances tightening available supply. The token's ETF inflows have accumulated to $1.18 billion since their launch, reinforcing a growing institutional interest. Data shows.

How Did Markets React?

The XRP price action shows buyers reclaiming control after a multi-week downtrend. On January 3, XRP broke above the descending trendline that had capped rallies through November and December. This move marked the first structural improvement since the selloff accelerated last year. Market analysis indicates.

Price is now testing the 50-day EMA around $2.04 and remains below the 100-day EMA at $2.22 and the 200-day EMA near $2.35. These levels will determine whether the current move evolves into a trend reversal or remains a relief rally. According to technical analysis.

Intraday structure indicates controlled momentum, with XRP trading inside a rising channel on the 30-minute chart. Momentum indicators such as RSI and MACD remain positive, suggesting that buyers are in control without excessive chasing behavior. Technical indicators show.

What Are Analysts Watching Next?

Analysts are monitoring the $2.35 level closely, as a sustained close above $2.42 would signal a potential move toward $2.60–$2.70. If XRP clears the $2.42 resistance with high volume, it may ignore the overbought RSI signal and push toward the $2.53 extension. Market analysis suggests.

The broader regulatory environment also plays a role. The CLARITY Act, which aims to define how banks and financial institutions can interact with digital assets, is set for Senate markup later in January. This shift in regulatory tone supports institutional participation through ETFs and reduces headline risk. According to reports.

Exchange-held XRP supply has dropped to roughly 1.6 billion tokens, the lowest level since 2018. This trend indicates that holders are moving tokens into longer-term storage rather than positioning to sell into rallies. Data shows.

If XRP fails to hold the $2.35 zone, it risks a bearish retest of the moving averages, potentially pushing the asset back into its prior consolidation range between $2.00 and $2.15. A slip below $2.26 could invalidate the breakout, signaling a bearish retest of the moving averages. According to analysis.