Ripple's Critical $2 Price Level: Analyzing Recent Trends
XRP demonstrates a potential reversal as it approaches a crucial resistance point near $2, indicating a cautious optimism among analysts.
Ripple’s native token, XRP, is showing indications of a potential price revival. After a dip to around $1.84, it has recently bounced back to approximately $1.95. Analysts suspect that buying momentum is gradually accumulating.
Falling Wedge and RSI Divergence
On the hourly chart, XRP is illustrated within a falling wedge formation, typically observed toward the conclusion of a downward trend. The asset tested the lower bounds of this wedge before ascending, which was accompanied by an increase in trading volume.
Meanwhile, the Relative Strength Index (RSI) is on the rise despite the price being within a downward channel. This uptick in RSI is termed a “bullish divergence” in analytical circles, suggesting that upward momentum is building despite the downtrend in price.
An analyst known as CW elaborated on the situation:
“$XRP is forming a downtrend. However, the RSI is rising, and buying is increasing. This indicates a bullish divergence is forming.”
A breakout over the upper edge of the wedge, around the $2 – $2.05 range, may signal the first sign of an impending trend change.
Support and Resistance Levels
Chart analyst Ali Martinez has identified three key price points to monitor: support is set at $1.78, with resistance levels at $1.97 and $2. The downtrend will persist until the asset can surpass these resistance benchmarks.
3 levels to watch for #XRP: • Support: $1.78
• Resistance: $1.97 and $2 pic.twitter.com/VZeGVncAYG — Ali Charts (@alicharts) January 22, 2026
Additional Insights
As trading volume has surged by over 22%, totaling $6.54 billion, the open interest in XRP futures has also slightly climbed to $3.40 billion. Although the price rose 2% over the last day, it remains 7% down from the week before.
In a broader observation, three days ago, analyst Crypto Patel remarked that XRP is trading above what he defines as a long-term breakout zone, mentioning:
“#XRP is trading above a confirmed multi-year breakout zone after completing a long accumulation phase.”
Patel indicated possible price targets ranging from $3.50 to over $10, underscoring that closing below $1.30 on higher time frames could invalidate this potential setup.
Additionally, in the past year, XRP reserves on Binance have decreased by nearly 45% from $10.16 billion to $5.55 billion, suggesting a shift toward longer-term holding by users, as reported by CryptoPotato yesterday.
