XRP regained momentum after regaining the $2.20 level and extending its move toward the $2.41 level, marking one of the strongest advances in recent months. This recovery comes after a long period of selling pressure and uncertainty, and has reignited bullish hopes among some investors who now believe that XRP could challenge or exceed all-time highs later this year. Although skepticism remains across the market, price movements suggest that XRP is no longer purely defensive.
Related books
According to a recent CryptoQuant report, early January brought visible improvement across the crypto sector, with Bitcoin rallying towards $93,000 and XRP decisively above $2.30. This synchronized strength helped shift sentiment as XRP broke out of its previous consolidation range and began to show signs of new trend formation. Importantly, this movement was not driven solely by price.
On-chain data points to deeper structural changes within the XRP ecosystem. Activity on the XRP Ledger has accelerated rapidly, with network growth reaching levels not seen during previous consolidation phases. This expansion suggests that price increases are being supported by real usage and participation rather than short-term speculation.
XRPL liquidity spike suggests structural changes behind breakout
The CryptoQuant report shows a decisive change in the market structure of XRP, brought about not only by price increases but also by significant changes in liquidity and participants. One of the most notable developments was the explosive increase in liquidity on the XRPL decentralized exchange, which amounted to approximately $173 billion.
Rather than thinning out during the downturn, liquidity has expanded rapidly, suggesting that major companies are actively positioning themselves rather than retreating. This action is usually associated with preparation for increased volatility or a more persistent trend change.
The timing of this development is also important. Since mid-December, liquidity spikes have become more frequent and larger, a pattern consistent with the entry of more sophisticated market makers. This effectively changes the trading environment, making it easier for whales and institutional investors to deploy size without causing destructive price movements. From a practical perspective, XRP is becoming a more efficient market for large capital.
Importantly, this liquidity is not idle. XRPL DEX trading activity is surging, indicating that the deeper order book supports actual usage rather than passive positioning. At the same time, market behavior shifted in favor of buyers. Aggressive buying took the lead, bearish pressure subsided, and prices were able to break out of the previous compression.
The forced short covering further strengthened the move and helped XRP overcome key resistance near $2.30. Taken together, these moves suggest that structural improvements, rather than just speculative momentum, are underpinning XRP’s recent strength.
Related books
XRP faces significant overhead resistance
The daily chart of XRP shows a noticeable change in short-term momentum after a long period of downward pressure. Prices have soared from December lows of around $1.85 to $1.90 and are currently trading around $2.35, marking a sharp recovery that caught sellers off guard.
After months of falling highs and lows, analysts say view This rebound is done as an initial trend reversal attempt rather than a confirmation of bullish continuation.
The break above the short-term moving average (blue line) is a constructive development. This level had previously acted as a dynamic resistance line throughout November and December, consistently rejecting any attempts to move higher. Bringing it back would indicate that momentum is improving and the market structure may change.
However, XRP is currently approaching a tight resistance cluster between $2.45 and $2.65 where both the 100-day and 200-day moving averages converge. Historically, this zone has been under strong selling pressure.
Related books
While recent rallies have seen an increase in attendance compared to late December, they are still well below levels seen during earlier surges. This suggests that buyers are regaining control, but conviction has not yet formed. This move will strengthen if there is a period of consolidation above $2.20.
If XRP can sustain above the $2.30 to $2.35 area, a broader recovery toward $2.70 becomes more likely. Otherwise, a pullback is likely and XRP will remain range bound and vulnerable to renewed selling pressure.
Featured image from ChatGPT, chart from TradingView.com
