XRP sits at a crossroads. Buying and selling across the $1.6 space after a steep run increased and a later pullback, the token now rests on a weekly assist band that merchants are watching carefully.
Based on crypto analyst Scott Melker, this is likely one of the cleaner risk/reward setups in crypto proper now — a small cease can restrict losses whereas a bounce might provide significant good points.
Associated Studying
Assist Zone Holds The Key
Primarily based on experiences, the zone round $1.55 to $1.60 is vital. It traces up with the midpoint of the breakout that started in November 2024 and has acted as resistance earlier than flipping to assist.
When worth briefly dipped towards $1.50 after which closed January above the $1.60 mark, some merchants learn that as a liquidity sweep that cleared quick orders. That form of motion can presage both a bounce or a deeper transfer, relying on whether or not recent shopping for exhibits up.
What Historical past Reveals
XRP moved sideways in 2023 and far of 2024 earlier than breaking out from roughly $0.50 to $0.60 in November 2024. A quick advance adopted, carrying worth towards the $2.00 space after which increased into the $3.66 peak in July 2025.
Loopy chart.
Buying and selling precisely on the final significant assist on the chart earlier than an enormous air pocket.
For merchants, that is about the perfect danger/reward you get on an asset. Straightforward to chop free with a small loss if assist fails. pic.twitter.com/wySapwsnT0
— The Wolf Of All Streets (@scottmelker) January 31, 2026
These good points set the next construction, however in addition they left massive pockets of revenue taking above present ranges. Reviews say that repeated failed makes an attempt above $3.50 marked weakening demand, which helped set off the present drop again to the $1.6 area.
Tight Draw back, Open Upside
Based on Scott Melker, a.okay.a. “Wolf of All Streets”, merchants can handle danger with a cease between $1.45 and $1.50. That makes the draw back measured.
On the flip facet, a restoration would possible check $2.00 first, then run into provide round $2.50–$2.60, earlier than going through heavier resistance close to $3.00 and the previous highs.
That path is easy on paper, however market context adjustments outcomes. Quantity affirmation is absent from most of the bullish takes; a assist maintain with out seen shopping for on the tape is fragile.
Broader liquidity in US markets and danger urge for food for crypto may even play a serious function in whether or not the bounce can maintain itself.
Associated Studying
XRP’s Candy Spot: Small Threat, Huge Upside
For Melker, setups like XRP’s present stage are uncommon in crypto proper now — an outlined assist, a good cease, and clear upside targets create a situation the place the potential reward outweighs the danger.
He emphasizes that merchants don’t must predict each twist available in the market; as a substitute, specializing in trades with managed losses and significant good points will be the distinction between surviving and thriving in risky circumstances.
In XRP’s case, the near-term danger is small relative to the potential rebound, making it a setup many are watching carefully.
Featured picture from Unsplash, chart from TradingView
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