XRP Signals: Charts Target Bullish Gains

What to Know:

• Key takeaway #1 — XRP’s technical setup is turning bullish, with breakout patterns signaling potential trend continuation.
• Key takeaway #2 summarizing institutional demand is absorbing supply, as ETF inflows and falling exchange balances tighten liquidity.
• Key takeaway #3 explaining traders should watch for confirmation of breakouts and increasing institutional involvement for potential upside.

XRP has demonstrated bullish signals recently, rallying approximately 18.5% in the first few days of the year. This surge reflects positive momentum across the cryptocurrency market, with XRP exhibiting technical strength and improving fundamentals. The confluence of these factors suggests that XRP may experience further price rallies in the months ahead, attracting attention from both retail and institutional investors.

XRP Breaks Out of Falling Wedge

The daily chart for XRP reveals a breakout from a falling wedge, a bullish reversal pattern typically observed during corrective phases within broader uptrends. This pattern suggests weakening downside momentum as prices form lower highs and lower lows inside a narrowing channel. The breakout above the wedge’s upper trendline, accompanied by improving relative strength, indicates a potential shift in market sentiment toward XRP.

Currently, XRP is attempting to reclaim key moving averages, including the 20-day and 50-day EMAs, with the 200-day EMA near $2.35 serving as the next technical hurdle. Confirmation of this breakout could pave the way for a move toward the $2.60–$2.70 resistance zone by February, representing a potential 25% increase from current prices. Traders and investors are closely monitoring these technical indicators to gauge the strength and sustainability of the bullish trend in XRP.

How Does the Wyckoff Reaccumulation Model Affect XRP?

According to an analysis by Charting Guy, XRP’s recent price surge occurred within its prevailing Wyckoff reaccumulation pattern. This pattern is a mid-trend pause that typically emerges after an initial rally, allowing larger market participants to absorb supply before the next upward move. XRP began stabilizing in late 2024 after establishing a base near $1.20, marking the initial phases of the pattern. The price then consolidated below resistance around $1.90-$2.00 for most of 2025, indicating a period of cooling rather than a complete trend reversal.

In late 2025, XRP briefly dipped below $1.70, a classic Wyckoff “spring below,” before quickly regaining lost ground, signaling seller exhaustion. As of early 2026, XRP is attempting to break above the descending “creek” resistance near $2.10-$2.15. A decisive breakout would confirm a Jump Across the Creek (JATC) and entry into Phase D. If this pattern holds, projections range from $2.80-$3.20, with some analysts forecasting longer-term breakout targets near $7, roughly a 230% upside from current levels.

Institutional Adoption and XRP Price Targets

Spot XRP ETFs in the United States have continued to attract capital, extending their inflow streak to 29 consecutive trading days despite market volatility. These ETFs recorded $13.59 million in net inflows recently, bringing cumulative inflows to $1.37 billion since their launch. The total net assets of these ETFs stood at approximately $1.24 billion, even as XRP’s price faced month-end selling pressure. These sustained inflows suggest that institutions are quietly absorbing XRP supply, potentially influencing its price dynamics.

The continuous inflows into XRP ETFs, even amid market fluctuations, underscore the resilient institutional demand for XRP. This demand, coupled with decreasing XRP balances on exchanges (reaching their lowest levels since 2018), signals reduced sell-side liquidity. Standard Chartered has projected that XRP could rise to $8 by 2026, driven by increasing institutional participation and long-term capital allocation. These factors collectively point to a tightening supply and sustained demand, a market setup historically preceding stronger upside moves.

What Factors Are Driving Volatility in XRP?

Volatility in XRP can be attributed to a variety of factors, including broader cryptocurrency market trends, regulatory developments, and technological advancements within the XRP Ledger. Market sentiment, influenced by news events and macroeconomic indicators, also plays a significant role in short-term price fluctuations. Furthermore, derivatives data, such as funding rates and open interest in XRP futures, can provide insights into speculative activity and potential volatility spikes.

The XRP Ledger itself is undergoing continuous development, with upgrades and new features potentially impacting its efficiency and utility. These technological factors, combined with the inherent volatility of the cryptocurrency market and the influence of speculative trading, contribute to the dynamic price movements observed in XRP. Monitoring these various elements is crucial for understanding and anticipating potential volatility in XRP’s price.

Analyzing Liquidity and ETF Flows

Liquidity is a critical factor affecting XRP’s price stability and potential for growth. The decreasing XRP balances on exchanges, as highlighted by Glassnode data, indicate a tightening supply, which can lead to more significant price movements when demand increases. This reduced sell-side liquidity, coupled with sustained inflows into XRP ETFs, suggests that institutional investors are absorbing a considerable portion of the available supply.

The ETF flows provide a clear indication of institutional sentiment towards XRP. The consistent inflows, even during periods of market volatility, demonstrate a long-term investment perspective. These ETF flows not only reduce the available supply but also signal confidence in XRP’s future prospects, potentially attracting further investment and contributing to price appreciation. Monitoring these liquidity and ETF flow dynamics is essential for assessing the overall health and potential of the XRP market.

XRP’s recent technical breakouts, coupled with increasing institutional interest and tightening liquidity, paint a bullish picture for its future. These factors suggest that XRP may experience further price appreciation, driven by both technical momentum and fundamental strength.

Related: XRP Price: Will It Mirror the 2025 Rally?

Source: Original article