Key Takeaways
- XRP has broken out of its falling channel and reclaimed $2, which supports a continued rally.
- Liquidity is concentrated around $2.30, so XRP could dip to fill the gap before resuming its upward push.
- XRP can target $2.94 and possibly $3.26, but weak volume could send it back toward $1.77.
Unlike its performance in the final week of 2025, XRP has made a move that traders can’t ignore.
Over the past seven days, its market value has jumped 27%. As a result, XRP’s price has reclaimed $2 after briefly losing that key psychological level.
However, the rally also left behind a clear gap on the chart — that type that often signals unfinished business.
Now the market faces a key test. Can XRP’s price slowly fill that gap, or will it risk a pullback if sellers step in?
XRP Sees New Year Reversal
On the 4-hour chart, XRP’s price stayed trapped in a falling channel from the second week of December 2025 through the final day of the month.
As a result, the price dropped to $1.81. That decline pushed some traders to call for a longer correction.
But once the New Year started, momentum shifted.
At the time of writing, XRP has broken above the channel’s upper trendline. This move happened because bulls defended the key support zone.
Next, XRP’s price cleared two major hurdles. It pushed above the resistance level at $1.94 and then crossed the $2.13 mark.
However, the chart still flashes a warning.
The Relative Strength Index (RSI) rose alongside the rally. But it is now nearing the overbought zone. Therefore, XRP could face a pullback if buyers slow down.
However, at the same time, the Holders Sentiment has hit the highest level since October.
Interestingly, it was during this period that XRP’s price closed in on its $3 after its all-time high.
While history does not repeat itself, past performance can influence future trends. Therefore, if bulls maintain the pressure, XRP’s price could continue to rise.
Outside the technical outlook, it is worth noting that the rise in spot XRP exchange-traded fund (ETF) inflows contributed to the price increase.
As of now, total net assets have hit $1.65 billion. Should it reach the $2 billion mark, the XRP price might follow suit.
Exchange Supply Hits 8-Year Low
To add to that, Glassnode data shows the share of XRP held on exchanges has fallen to its lowest level since April 2018.
As of this writing, only 2.30% of the circulating supply sits on these trading platforms.
That matters because coins on exchanges are the ones easiest to sell. So, when the exchange supply shrinks, selling pressure often weakens. In turn, the price can rise easily if buyers continue to step in.
At the same time, lower exchange balances can lead to tighter liquidity. That means the order book can get thinner.
As a result, even moderate buying can push XRP’s price higher faster than usual. However, the same setup can also amplify pullbacks if sellers return, because price can move lower when depth is limited.
There’s a Warning for XRP Bulls
In the meantime, traders must remain cautious.
That’s because the liquidity heatmap shows where large clusters of orders sit, and those zones often act like price magnets.
At press time, the highest liquidity concentration sits around $2.30.
So, if bulls fail to sustain buying pressure, XRP could drift back toward that level as the market hunts liquidity and fills nearby imbalances.
XRP Price Prediction: To Hit $3 Again?
Even if XRP sees a minor pullback, the daily chart still supports a bullish outlook.
XRP has now broken above the resistance line near $2.22. As that happened, the Awesome Oscillator (AO) flipped positive for the first time since October 7.
That shift matters because the last time AO turned positive, XRP later climbed to around $3.
At the same time, Bull Bear Power (BBP) has surged to its strongest level since July 22. That earlier period also preceded a major rally, which pushed XRP toward its all-time high.
As a result, the current setup maintains the upside in play. If momentum holds and buyers stay active, XRP’s price could break $2.49 and extend toward $2.94.
In an even more bullish case, the price could stretch as high as $3.26.
However, this outlook depends on sustained buying volume. If demand weakens, the bullish structure could fail. In that case, XRP may slip back toward $1.77.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
