XRP Price Rally Signals Major Bullish Turn

What to Know:

• XRP is testing a critical support level near $2.12 after a recent rally, with analysts assessing the likelihood of further upward movement.
• The analysis occurs within the context of XRP’s position in a defined downward channel on its five-day chart amid broader market recovery.
• XRP’s ability to maintain support and potentially break upward is critical for sustained liquidity and further institutional interest.

XRP is currently navigating a crucial juncture, testing support around $2.12 following a surge that briefly elevated it to the third-largest non-stablecoin cryptocurrency. Market participants are keenly observing its behavior within a defined channel, assessing whether it will consolidate for another leg up or face a deeper correction. Technical analysis and on-chain data are providing a mixed but cautiously optimistic outlook, weighing the probabilities of various price outcomes.

Technical Analysis and Price Targets

According to EGRAG CRYPTO, XRP’s current trading pattern suggests a “controlled correction” rather than a distribution phase. The analyst assigns a 60% probability of an upward breakout if XRP closes above the 21-period exponential moving average and breaches the channel’s upper boundary near $2.30. This breakout could potentially propel XRP toward targets between $3.10 and $3.30. However, failure to break out could result in range-bound trading or even a decline toward $1, with probabilities of 30% and 10%, respectively.

Trading Volumes and ETF Inflows

Recent trading activity underscores the heightened interest in XRP, with substantial trading volumes recorded. Furthermore, the newly launched spot XRP ETFs have seen significant inflows, attracting almost $1.2 billion since mid-November 2025. These ETFs have absorbed nearly 1% of XRP’s circulating supply in just over a month, signaling growing institutional participation and confidence in the asset.

On-Chain Data and Market Sentiment

On-chain metrics present a nuanced picture of XRP’s current state. Data from CryptoOnchain indicates that the XRP Taker Buy/Sell Ratio on Binance has reached a one-month high, suggesting a potential easing of aggressive selling pressure. This could be interpreted as a bullish signal, hinting at renewed buying interest. Conversely, some analysts have pointed to large volume candles and rejection at resistance levels as potential bearish indicators.

Potential Roadblocks and Resistance Levels

Despite the overall positive sentiment, XRP faces immediate technical challenges. Sell walls between $2.17 and $2.25 could impede its upward trajectory, potentially slowing down any advancement. Market participants should closely monitor these resistance levels to gauge the strength of the buying pressure and the likelihood of a sustained breakout.

Broader Outlook and Future Scenarios

Looking ahead to 2026, the outlook for XRP remains open to various possibilities. Bullish scenarios include a run toward $10, fueled by continued institutional adoption and Ripple’s expanding business operations. Conversely, bearish scenarios could see XRP retreating toward $1 if profit-taking intensifies or broader market conditions deteriorate. The actual trajectory will likely depend on a combination of technical factors, market sentiment, and fundamental developments within Ripple and the broader crypto ecosystem.

In conclusion, XRP’s current position is at a critical juncture, with the potential for significant upward movement if it can overcome immediate resistance levels. The growing institutional interest, as evidenced by ETF inflows, provides a supportive backdrop, but traders should remain vigilant and monitor both technical and on-chain indicators to navigate potential pitfalls.

Related: XRP Liquidity Signals Potential Outperformance

Source: Original article