XRP Breaks 90-Day Downtrend as Price Reclaims $2.36 Level

Source: CryptoTale Original Title: XRP Breaks 90-Day Downtrend as Price Reclaims $2.36 Level Original Link: Key Highlights

• XRP closed above key demand after breaking a channel that capped price since October.
• ETF inflows hit a five-week high as futures open interest climbed with rising prices.
• Improving market mood followed a Bitcoin rebound and lifted large-cap tokens like XRP.

XRP/USDT staged a sharp technical reversal on the daily chart from a major exchange, ending months of controlled downside pressure with a decisive breakout. The pair closed at $2.3616, gaining 0.59% on the day, while trading between $2.3164 and $2.4172. That close placed XRP firmly above its $1.85–$1.90 demand zone, which held as a price floor through late December and early January. Most importantly, XRP broke above a descending channel that capped price action since October, marking a structural shift traders tracked for months.

Technical Structure Shifts as Momentum Accelerates

During the period from August to December, XRP followed a distinct downtrend pattern where the highs dropped from $3.10–$3.20 and the lows fell to $1.80. The price was turned down several times at Resistance 2, which was located in the range of $3.00–$3.10, and at Resistance 1, which was located in the range of $2.50–$2.60.

Both of these areas were shown as supply zones on the chart. Price compression persisted until early January, when a single breakout candle cut through the channel’s upper trendline. In a single session, the breakout wiped out weeks of tight consolidation, and the market structure in the short term was changed.

XRP’s price now is above the previous demand base indicating that the sellers were not able to take control at lower levels. If the price holds above $2.20, the chart structure supports further probing of the upside.

The next technical test sits at Resistance 1 between $2.50 and $2.60, where previous rallies stalled. A sustained daily close above that range opens a path toward $3.00, a level that capped advances in August and September. Failure to hold recent gains would shift focus back to the $1.90 support zone.

RSI Signals Aggressive Trend Expansion

Momentum indicators confirmed the structural break. The 14-day Relative Strength Index surged to 74.81, up sharply from 48.71 in a single move. That reading places XRP inside overbought territory following prolonged consolidation. Historically, similar RSI expansions on this chart aligned with trend continuation rather than immediate reversals.

The RSI indicator suggests strong buying pressure rather than exhaustion at current levels. Does momentum sustain long enough to challenge the $2.60 ceiling?

Capital Flows and Sentiment Support the Move

Several catalysts accompanied the technical breakout. Data showed XRP exchange-traded funds recorded $46.1 million in inflows on Monday, Jan. 5. That marked the highest single-day ETF inflow for XRP in nearly five weeks.

Rising ETF inflows increase demand for underlying XRP and often create upward price pressure. At the same time, derivatives activity expanded sharply. XRP futures open interest jumped 21% in 24 hours to $4.65 billion.

When price and open interest rise together, data typically point to new capital entering positions rather than short covering. Furthermore, Bitcoin also performed splendidly as it rebounded above $94,000. This prompted the altcoin to rise.

This alignment added further support to XRP’s bullish structure. Meanwhile, broader market sentiment improved as Bitcoin rebounded above $94,000. The Crypto Fear and Greed Index moved back into neutral territory after remaining in extreme fear since mid-December.

XRP Community Overview

Historically, large-cap tokens like XRP tend to perform better as sentiment stabilizes. Analyst commentary circulated that XRP is built for significant capital waves, with remarks highlighting operational rails, participation of financial institutions, and stablecoins such as RLUSD already in use. Analysts connected the recent price movements of XRP with its function in cross-border payments and tokenization, which represent trillion-dollar market opportunities.