XRP Experiences Notable 15% Increase Amid Early 2026 Cryptocurrency Momentum
January 5, 2026
Finance

XRP Experiences Notable 15% Increase Amid Early 2026 Cryptocurrency Momentum

Despite strong short-term price gains, analysts remain cautious about the sustainability of XRP's upward trend

Summary

XRP has posted a significant price increase of approximately 15% over the past week, contributing to the broader positive momentum observed across major cryptocurrencies as 2026 begins. Market experts highlight technical patterns that suggest both potential short-term continuation and the possibility of pullbacks, emphasizing the need for cautious optimism. ETFs focused on XRP have seen growing inflows, while recent market liquidations indicate forced short position closures. Key resistance levels and demand zones are under scrutiny as traders evaluate XRP's trajectory.

Key Points

XRP's price rose approximately 15% in the past week, reaching around $2.13 with a market cap near $129.4 billion.
Technical analysis identifies a bullish triple-tap pattern on lower timeframes but cautions this may be a short-term bounce rather than full trend reversal.
XRP's weekly RSI has turned bullish, historically linked to significant rallies, but additional confirmation is needed via weekly closes.
XRP ETFs have seen $13.6 million in daily net inflows, increasing total assets to about $1.4 billion, and liquidations data indicates significant forced short covering.

In the opening days of 2026, XRP (CRYPTO: XRP) has demonstrated a remarkable rise, appreciating nearly 15% within the last week. This surge forms part of a wider trend in the cryptocurrency market, which has shown robust gains since the start of the year. Notably, XRP's price has approached $2.13, bringing its market capitalization to an estimated $129.4 billion.

This upward shift in XRP's valuation stands alongside other prominent cryptocurrencies. Bitcoin (CRYPTO: BTC) has recorded a more modest increase of roughly 7.3%, bringing its value to about $93,101.52 and its market cap close to $1.85 trillion. Ethereum (CRYPTO: ETH) similarly advanced by 9%, priced near $3,178.36 with a market capitalization of $383.6 billion. These movements collectively illustrate a generally positive tilt across the sector.

Technical Insights and Market Commentary

Industry analysts specializing in chart patterns and price action have provided perspectives on XRP's current trajectory. CrediBULL Crypto has identified a bullish formation on lower timeframes, specifically noting a 'triple-tap' pattern that points toward continued buying opportunities during short-term price corrections. According to this analysis, XRP might target local highs approaching the $2.30 mark in the short run.

However, CrediBULL also emphasizes caution. The analyst notes that the recent price movement should likely be interpreted as a bounce within the lower timeframe, rather than definitive proof of a sustained recovery following an extended months-long correction. This suggests that while the immediate price action is encouraging, investors should not yet consider the broader downtrend resolved.

Furthermore, the analysis underlines a significant support area near $1.60, described as a higher-timeframe demand zone. A retracement to this region would, in CrediBULL's view, constitute a substantial long-term buying opportunity, potentially setting the stage for an extended upward phase.

Additional technical perspectives come from Cryptoinsightuk, which offers a cautiously optimistic outlook. The analyst highlights that XRP's weekly Relative Strength Index (RSI) has shifted into bullish territory. Historical data indicates that such RSI flips often precede rallies ranging from 50% to over 500%. Nonetheless, Cryptoinsightuk stresses the need for at least one more positive weekly closing candle to validate this anticipated rally conclusively.

On shorter timeframes such as the four-hour and hourly charts, XRP appears overbought. Consequently, a near-term correction targeting the $1.90 to $1.95 price bracket seems probable. Importantly, this pullback is viewed as healthy and consistent with an ongoing bullish setup, rather than evidence of trend reversal.

Key resistance lies between $2.26 and $2.30, with a critical zone identified at $2.60 to $2.70. If XRP manages to reclaim this October liquidation area, it could unlock rapid upside momentum toward levels as high as $4.30 or beyond. This potential acceleration would be fueled by available liquidity overhead and the unfolding of short squeezes.

Market Flows and Liquidations

Data tracking the inflows into XRP-focused exchange-traded funds (ETFs) reveals increased investor participation. According to SoSoValue, daily net inflows into XRP spot ETFs totaled $13.6 million, boosting total net assets under management to approximately $1.4 billion as of January 2.

Meanwhile, Coinglass data sheds light on recent market liquidations linked to XRP. Total liquidations reached $10.2 million, with a significant $7.6 million portion attributed to short liquidations. This pattern suggests that short sellers were compelled to cover positions amidst the swift price ascent, contributing to further upward pressure.

Conclusion

XRP's 15% price gain over the past week forms part of a broader rally witnessed across leading cryptocurrencies in early 2026. Technical analysis highlights a complex landscape with bullish setups tempered by indicators signaling the potential for short-term corrections. Increasing inflows into XRP ETFs reflect growing market interest, while liquidation data implies dynamic shifts in trader positioning.

Key focus points for market participants include monitoring support levels around $1.60 and watching for confirmation of weekly RSI signals before anticipating substantial trend continuation. Resistance zones near $2.30 and $2.70 remain pivotal in determining whether XRP can sustain its momentum and access higher price targets.

As the market evolves, these factors collectively underscore the importance of balanced assessment and risk management when engaging with XRP positions.

Risks
  • The recent price increase may represent only a lower-timeframe bounce, not a resolution of the months-long correction.
  • Short-term technical indicators show overbought conditions, suggesting a likely pullback to $1.90–$1.95 which could unsettle some investors.
  • Confirmation of a sustained rally requires additional positive weekly closes, without which the bullish case remains uncertain.
  • Resistance zones at $2.26–$2.30 and $2.60–$2.70 could prove challenging and might stall or reverse price momentum.
Disclosure
Education only / not financial advice
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