XRP Targets $2: Two Scenarios

What to Know:

• XRP is showing signs of accumulation, reminiscent of patterns seen before the 2017 breakout, suggesting potential for significant price movement.
• Standard Chartered forecasts XRP to reach $8 by the end of 2026, driven by increased regulatory clarity and institutional adoption.
• Recent ETF inflows and decreasing exchange balances may create a setup for XRP’s next major market move, warranting close monitoring of price trends.

XRP is currently range-bound, consolidating between $1.82 and $1.91, even as market participants position themselves for potential upside into 2026. The digital asset has shown minimal price movement, with a marginal increase of 0.04% in the last 24 hours and 0.07% over the week. Institutional investors are closely watching XRP, given the ongoing developments in regulatory clarity and the potential for increased adoption.

Sideways Accumulation

Crypto analyst “Steph is crypto” notes that XRP has completed 393 days of sideways accumulation, a pattern similar to that seen before the 2017 breakout. During that period, the price consolidated, testing the patience of traders before experiencing an aggressive expansion. This historical parallel suggests that XRP may be gearing up for a significant move, although the market’s current focus may be elsewhere. Such accumulation phases are common in crypto, often preceding substantial price appreciation as supply tightens and demand builds.

Short-Term Scenarios

In the short term, two potential scenarios exist for XRP. If the $1.82 support level holds and XRP reclaims the $1.88-$1.89 zone, the next target is $1.92. A close above this level could trigger a substantial recovery, potentially opening the path to $2.00 and then $2.08. Conversely, if the $1.82 support fails, the next levels to watch are $1.77 and the $1.55 to $1.60 range. These levels are critical for traders to monitor, as they could dictate the direction of XRP’s price action in the coming weeks.

Standard Chartered’s Bullish Outlook

Standard Chartered predicts XRP to reach $8 by the end of 2026, a roughly 330% increase from current levels. This bullish forecast is based on the expectation of increased regulatory clarity, which would enable greater institutional exposure. Geoff Kendrick, Standard Chartered’s Global Head of Digital Assets Research, believes that Ripple and the XRP ecosystem will be able to develop without the overhang of ongoing litigation. Such projections highlight the potential impact of regulatory developments on the price of XRP.

ETF Inflows and Exchange Outflows

XRP ETFs have attracted over $1.25 billion in investor funds since their launch in November, according to data from SoSoValue. Simultaneously, XRP exchange balances have been declining to multiyear lows. This combination of ETF inflows and exchange outflows may create a supply squeeze, potentially setting the stage for XRP’s next major market move. The direction of this move will be closely watched by traders and investors alike, as it could signal the beginning of a new uptrend or a continuation of the current consolidation phase.

Market Structure and Liquidity

Trading volumes for XRP remain subdued, down 0.7% in the last 24 hours to $1.69 billion, according to CoinMarketCap data. This suggests that traders are taking a cautious approach, waiting for a clear signal before committing to a directional bias. The upcoming January escrow release could introduce volatility, with market participants eyeing the $2 mark as a key level to watch for a potential price rebound. Liquidity dynamics and market structure play a crucial role in determining the price action of XRP, and these factors should be closely monitored.

In summary, XRP is currently consolidating, but several factors suggest the potential for a significant move in the coming months. The combination of technical accumulation patterns, bullish forecasts from institutions like Standard Chartered, and positive ETF inflows paints a cautiously optimistic picture for XRP’s future price action. The market’s response to key support and resistance levels will be crucial in determining the direction of the next major trend.

Related: XRP ETF Filing Signals New Crypto Interest

Source: Original article