XRP Price Gives Back Upside, Market Watches Support Closely

XRP’s price has shown strong gains in the early days of 2026, rising more than 18% to trade above $2.16. Analysts highlight that this rally has been supported by ETF inflows and improving technical indicators according to analysis. The broader crypto market has also seen gains, with Bitcoin and Ethereum leading a 7.3% increase in combined net valuation year-to-date.

Technical analysis indicates XRP has broken out of a falling wedge pattern, which analysts view as a bullish reversal formation. This breakout occurred near $2.05–$2.10 and has led to renewed buying activity in the 20-day and 50-day EMAs. The 200-day EMA remains a key hurdle for further upside, currently near $2.35.

Market watchers are also monitoring a Wyckoff reaccumulation model, which suggests XRP could test levels as high as $7 in the longer term. This pattern has been unfolding since late 2024, with consolidation near $1.90–$2.00 in 2025. A recent "spring below" at $1.70 in late 2025 indicated seller exhaustion and a potential shift in trend.

Why Did This Happen?

ETF inflows have played a crucial role in XRP's recent price recovery according to reports. U.S.-listed spot XRP ETFs have drawn about $1.23 billion in net inflows since their launch, including $46.1 million in a single day as data shows. These inflows have created structural demand, particularly in a market with historically low exchange-held balances.

Institutional investors have also been active, with large-volume transactions like a $23 million one-minute trade highlighting increased participation. This type of institutional activity is often a sign of confidence in the asset's near-term direction.

What Are Analysts Watching Next?

XRP's price is currently consolidating near $2.35, with analysts watching whether it can break through the $2.40–$2.50 resistance cluster. This area has historically capped every rally through late 2025, making it a critical level for trend confirmation.

On the downside, key support levels are near $2.20 and $2.01–$2.03. A break below the $2.00 psychological level could trigger renewed bearish momentum, testing levels as low as $1.88.

The RSI and MACD indicators suggest that while the uptrend remains intact, momentum is beginning to slow. This could signal a period of consolidation or a controlled pullback rather than a full reversal in sentiment.

What About the Long-Term Outlook?

Analysts project XRP could trade as high as $2.70 by month-end and $3.07 by year-end, assuming continued ETF inflows and macroeconomic stability. Longer-term models suggest potential moves toward $6–$9 by 2028. These projections are based on a combination of technical patterns, regulatory clarity, and institutional adoption.

Despite these bullish scenarios, risks remain. A sharp macroeconomic downturn or regulatory uncertainty could disrupt the current trend. Investors are advised to monitor key support and resistance levels and consider position sizing accordingly.

Investors and traders are closely watching the upcoming U.S. Federal Reserve meeting in late January, which could influence risk appetite and market direction. A dovish policy path is seen as supportive for XRP, given its strong correlation to high-beta tech assets and the broader crypto market.

With $130.2 billion in market cap, XRP has regained large-cap status after a deep correction from its $3.65 yearly high. This re-rating reflects improved sentiment, ETF inflows, and a broader shift in institutional demand.

The current market structure suggests a "buy-the-dip" approach, with opportunities emerging on pullbacks to $2.20–$2.05. However, caution is advised due to the high volatility and potential for rapid reversals if sentiment shifts.