XRP is drawing renewed market attention as a combination of technical patterns and macroeconomic developments may set the stage for a potential rally toward $1.90 in early 2026.
The digital asset has been consolidating near $1.84–$1.86 after months of sideways trading, forming a falling wedge pattern. This formation often precedes bullish reversals, but crypto’s volatility means confirmation is critical. Coupled with recent Federal Reserve liquidity injections, analysts suggest conditions may be favorable for a short-term upward move, if key support levels hold.
XRP Price Today and Market Context
As of January 1, 2026, XRP is trading at $1.859, up 0.50% over 24 hours, with a trading volume of 1.77 billion XRP. Moderate volume suggests measured accumulation rather than aggressive buying, while the ongoing SEC lawsuit against Ripple, filed in 2020, continues to influence market sentiment and price volatility. TradingView analyst Leo524 noted that XRP has been in a strong downtrend over the past five months, repeatedly rejecting the descending trendline, and currently sits near a major green support zone, historically a launchpad for recovery moves.
XRP tests a key support zone after months of downtrend, with a potential recovery move if it breaks above the descending trendline. Source: Leo524 via X
“If the support zone holds and XRP breaks above the descending trendline, we can expect a potential recovery move,” Leo524 said.
From a technical perspective, traders should watch for a daily close above the descending trendline (~$1.88) with above-average volume as the first confirmation signal, while a breach of the $1.82–$1.84 support zone would weaken the bullish thesis. Broader market catalysts, including Bitcoin’s performance and institutional inflows, will also play a role. If conditions align, a move toward $1.90 becomes plausible, though it remains contingent on confirmation signals rather than guaranteed.
Technical Signals Point to a Potential Bullish Reversal
CRYPTO CAPTAIN (@UniverseTwenty) highlighted XRP’s daily chart, noting the classic falling wedge pattern: “The XRP breakout is imminent from this falling wedge pattern,” the analyst stated.
XRP gears up for a bullish surge as the falling wedge pattern signals a potential breakout toward $1.90. Source: @UniverseTwenty via X
On the daily chart, the wedge apex converges with the $1.82–$1.84 demand zone, which acts as a practical invalidation level. A daily close below this range would weaken the bullish thesis and signal that the pattern has failed.
Historical studies, including Bulkowski’s Encyclopedia of Chart Patterns, report a 68–74% success rate for falling wedges in equity markets. However, crypto markets are generally more volatile and leverage-driven, making pattern reliability more variable. In this context, analysts emphasize the need for volume confirmation to validate the breakout.
Fed Liquidity Boost: Macro Tailwinds for XRP
A key macro factor is the $74.6 billion repo injection by the Federal Reserve on December 31, 2025. X Finance Bull (@Xfinancebull) suggested this could benefit XRP and crypto more broadly, noting that liquidity is entering markets with tangible utility: “XRP has clarity, rails, and a fixed supply. Fiat expands. XRP doesn’t. That’s how this ends,” the analyst on X.
Fed pumps $74.6B liquidity, boosting XRP as smart capital flows into crypto with real utility and XRP’s fixed supply standing out. Source: @Xfinancebull via X
While increased liquidity may encourage investment in risk assets, it is important to distinguish correlation from causation. Historically, Fed repo operations primarily stabilize short-term money markets; their direct impact on XRP depends on risk-on sentiment and institutional flows.
Institutional adoption trends, such as the 2025 crypto ETF boom and the launch of Ripple’s RLUSD stablecoin, also provide potential support for XRP. Experts like Lyn Alden note that the record repo usage was a year-end balance sheet adjustment, not a financial crisis, which tempers expectations for guaranteed price jumps.
Final Thoughts
XRP’s setup combines technical patterns with macro liquidity support, pointing to a cautiously optimistic near-term scenario toward $1.90. The falling wedge indicates weakening selling pressure, and institutional interest alongside Fed liquidity provides potential upside.
XRP was trading at around 1.85, up 0.50% in the last 24 hours at press time. Source: XRP price via Brave New Coin
Traders should monitor the $1.82–$1.84 support zone, a trendline breakout around $1.88, and volume confirmation as key signals. Failure to hold these levels would delay or invalidate the bullish scenario. Despite SEC uncertainties, XRP’s utility, fixed supply, and growing adoption continue to support its potential, making $1.90 plausible, but not guaranteed.