XRP’s Quixotic Dance: $2.05 or Bust?

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Ah, dear reader, the quixotic dance of Ripple’s XRP has once again bewitched the crypto realm, its price flitting about like a sparrow dodging a cat. After a brief flirtation with the £1.84 mark, it has fluttered back to £1.95, leaving analysts in a tizzy. One might imagine the poor asset is trying to escape a gilded cage, only to find the bars are made of candlestick charts.

The Falling Wedge, a Sly Fox in Chartology

Behold, the 1-hour chart reveals XRP trapped in a falling wedge, a sly fox in the world of technical analysis. This contraption, often spotted near the tail end of downtrends, has seen our hero brush against its lower edge before rebounding, bolstered by a surge in volume. It’s like watching a mouse outwit a cat-briefly.

Meanwhile, the Relative Strength Index (RSI), that ever-optimistic barometer, is rising like a soufflé in a bakery, despite the price languishing in a downward channel. Analysts, ever the dramatists, call this a “bullish divergence,” as if momentum were a Victorian lady picking up her skirts to dance through a puddle of despair.

“Ah, XRP is in a downtrend,” opined the estimable CW, “but the RSI is a sprightly chap, and buying is increasing. A bullish divergence is afoot!”

Should XRP pierce the wedge’s upper boundary-approximately £2-£2.05-it would be the first sign that this downtrodden asset might finally shed its drab coat and don a top hat. Alas, the road to £2.05 is paved with the dreams of short-sellers.

The Sacred Paces to Watch

Chart analyst Ali Martinez, that oracle of the candlestick, has declared three sacred paces to observe: support at £1.78, and resistance at £1.97 and £2. Until XRP vaults above these, the downtrend remains as stubborn as a bad penny. One suspects the market’s sly fox is playing a game of leapfrog with these numbers.

Three paces to ponder for XRP:

• Support: £1.78
• Resistance: £1.97 and £2

– Ali Charts (@alicharts) January 22, 2026

Volume across exchanges has swelled by 22%, now a tidy £6.54 billion, while open interest in futures has crept up 1% to £3.40 billion. Options volume, that fickle beast, has leapt 15% to £4.32 million. Over 24 hours, the price has risen 2%, though it remains 7% shy of its weekly ambitions. A trifle underwhelming, but not entirely disheartening.

Zooming out, the estimable Crypto Patel declared, just three days past, that XRP had ascended above a “long-term breakout zone,” a phrase that makes one imagine a stock market equivalent of a man in a waistcoat shouting “Breakout!” at a garden party. Patel’s targets range from £3.50 to £10, though he warns that should XRP dip below £1.30 on higher time frames, this grand design may crumble like a soufflé in a hurricane.

Lastly, Binance’s XRP reserves have dwindled by 45% over the past year, from £10.16 billion to £5.55 billion. One might infer that users are stashing their XRP in private vaults, perhaps to fund a grand tour of the blockchain or simply to avoid the prying eyes of Uncle Reginald. A curious trend, to be sure, but not without precedent in the annals of crypto.

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2026-01-22 14:59