XRP regained momentum after regaining the $2.20 level and extending to the $2.41 mark, marking one of its strongest advances in recent months. The recovery comes after a long period of selling pressure and uncertainty, and has rekindled bullish expectations among a segment of investors who now believe XRP could challenge or surpass its highs by the end of the year. While skepticism remains in the broader market, price action suggests that XRP is no longer just defensive.
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According to the latest CryptoQuant report, the beginning of January brought a noticeable improvement to the entire crypto sector, with Bitcoin pushing to $93,000 and XRP moving above $2.30. That synchronicity helped reverse sentiment, as XRP broke out of its previous consolidation range and began to show signs of a bullish trend. Notably, this move was not driven by price alone.
The on-chain data points to a deep structural change within the XRP ecosystem. Activity on the XRP Ledger has been very rapid, with network growth reaching levels not seen during the previous consolidation phase. This increase suggests that rising prices are supported by actual consumption and participation rather than short-term speculation.
XRPL Liquidity Surge Signals Structural Shift Behind Breakout
CryptoQuant’s report shows a significant change in the structure of the XRP market, driven not only by price appreciation but also by deep fluctuations in capital and participation. One of the most notable developments is the explosion of the exchange rate of XRPL, which has risen to around $173 billion.
Rather than shrinking during periods of weakness, cash flows have grown significantly, suggesting that major players are staying put rather than exiting. This behavior is often associated with preparing for higher volatility or a long-term trend reversal.
The timing of this expansion is critical. Since mid-December, liquidity spikes are more frequent and larger in size, a pattern consistent with the entry of sophisticated market makers. This effectively transforms the trading environment, making it easier for whales and institutional participants to post size without causing disruptive price changes. In practical terms, XRP is becoming an efficient capital market.
Most importantly, this money doesn’t work. Transaction activity on the XRPL DEX has grown, indicating that deep order books are supporting real use rather than transactional standing. At the same time, market behavior has shifted to consumer dominance. Aggressive buying has taken control, while bearish pressure has eased, allowing the price to break out of its previous pressure.
Forced short covering further strengthened that move and helped propel XRP through key resistance near $2.30. Together, these changes suggest that structural development, not just speculative momentum, is underpinning XRP’s recent strength.
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XRP Faces High Strength Resistance
The daily chart of XRP shows a significant change in short-term momentum after a long period of low pressure. The price has rebounded from December lows near the $1.85–$1.90 range and is now trading around $2.35, marking a sharp recovery that caught traders off guard.
The following months are highs and lows, analysts look this repeats as an attempt to reverse the earlier trend rather than a confirmed bullish continuation
A break above the short-term moving average (green line) is a constructive development. This level previously served as volatile resistance between November and December, constantly rejecting the opposite attempts. Reclaiming it points to an improvement in momentum and a possible change in market structure.
However, XRP is now approaching a tight set of resistance between $2.45 and $2.65, where both the 100-day and 200-day moving averages meet. Historically, this area has attracted strong sales pressure.
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Although the latest rally shows increased participation compared to late December, it remains below the levels seen during the unexpected development. This suggests that while consumers are regaining control, convictions are still on the rise. A rally above $2.20 will help strengthen this move.
If XRP can hold above the $2.30–$2.35 area, the chances of a recovery to $2.70 increase. Failure to do so could result in a pullback, keeping XRP pegged and vulnerable to renewed selling pressure.
Featured image from ChatGPT, chart from TradingView.com
