Ripple’s native cross-border token is showing signs that it may be preparing for a change in direction. The price fell to around $1.84 before rebounding and is currently trading around $1.95. Analysts note that some early signals point to potential buying momentum building in the background.
Falling Wedge and RSI Divergence
On the hourly chart, XRP is staying within a descending wedge pattern. This setup often appears near the end of a downtrend. The asset touched the bottom edge of the pattern before bouncing, supported by rising volume.
At the same time, the relative strength index (RSI) is rising, even though prices remain in a descending channel. This rise in the RSI is what analysts call a “bullish divergence,” meaning it is gaining momentum even though the chart is still showing a decline.
Crypto analyst CW explained the current setup as follows:
“$XRP is forming a downtrend. However, the RSI is rising and buying is increasing. This indicates a bullish divergence is forming.”
A breakout of the wedge’s top line near $2 to $2.05 would be the first sign of a possible trend reversal.
support and resistance levels
According to chart analyst Ali Martinez, there are three main price levels to watch. Support lies at $1.78 and resistance lies at $1.97 and $2. The downtrend remains active until the asset crosses these resistance levels.
Three levels to watch for $XRP:
• Support: $1.78
• Resistance: $1.97 and $2 pic.twitter.com/VZeGVncAYG— Ali Charts (@alicharts) January 22, 2026
Volume across major exchanges increased by more than 22% to $6.54 billion. Open interest in XRP futures also increased by nearly 1% to $3.4 billion, and options trading volume increased by more than 15% to $4.32 million, according to CoinGlass data. Prices have increased 2% in the past 24 hours, but are still down 7% over the past week.
Some analysts remain focused on the big picture. Just three days ago, Crypto Patel pointed out that XRP was trading above what he called the long-term breakout zone. They pointed out that:
“#XRP is trading above a confirmed multi-year breakout zone after completing a long accumulation phase.”
Patel mentioned price expansion from $0.60 and shared targets ranging from $3.50 to over $10. They also stated that this long-term setup could be invalidated if XRP closes below $1.30 on higher time frames.
Furthermore, as CryptoPotato reported yesterday, over the past 12 months, Binance’s XRP reserves have declined by nearly 45%, dropping from $10.16 billion to $5.55 billion. This change indicates that more XRP is moving to private wallets, which may indicate long-term holding by users.
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