XRP Price Prediction: XRP Holds Critical Support as Elliott Wave Signals Cautious Path Toward $3.50–$4

As crypto markets stabilize following late-2025 volatility, XRP is consolidating near a technically significant zone that has historically influenced medium-term trend direction and trader positioning.

This consolidation follows XRP’s rebound from sub-$2 levels, with price action now reflecting balance rather than exhaustion. Analysts tracking higher-timeframe structure note that such pauses often occur when markets reassess liquidity conditions before committing to the next directional move.

XRP Price Today Holds Firm at Key Psychological Support

As of January 14, 2026, the current XRP price is trading near $2.06, representing a modest retracement from recent highs around $2.17. Earlier downside attempts were met with consistent demand near the $2.00 level, reinforcing its role as a psychological and structural support zone.

XRP has reclaimed and is defending the $2.00 psychological level, signaling strong buyer confidence, improving trend structure, and setting the stage for a potential move toward $3.50–$4.00. Source: TradingMula on TradingView

Round-number levels tend to attract liquidity due to clustering of orders. In XRP’s case, repeated rebounds from $2.00 suggest buyers are actively defending this area.

Technical commentary circulating among traders notes that XRP has “reclaimed and is defending the 2.00 psychological level,” a shift that indicates former resistance has transitioned into demand rather than remaining a short-term bounce.

Elliott Wave Analysis Suggests a Corrective Phase

An Elliott Wave interpretation shared by Cantonese Cat, a market analyst known within crypto trading circles for publishing long-running wave counts across major altcoins, identifies XRP’s recent price action as an expanded flat correction on the daily chart.

XRP consolidates near $2.06, with Elliott Wave signals pointing to higher levels once liquidity returns. Source: Cantonese Cat via X

According to this analysis, XRP is moving through a corrective A-B-C structure following its prior impulse move. “XRP is probably in some kind of flat correction,” the analyst wrote, adding that such formations often resolve once broader market liquidity improves.

Importantly, this interpretation is conditional rather than definitive. Elliott Wave counts are probabilistic, not predictive. In this scenario, a sustained weekly close below the $2.00 level would weaken the corrective thesis and increase the likelihood of deeper consolidation. Supporters of the expanded flat view note that similar structures have appeared during past XRP consolidations before trend continuation, though outcomes have varied depending on market conditions.

Weekly Structure Shows Improving Trend Conditions

On higher timeframes, XRP’s structure remains comparatively resilient. The asset has formed a higher low on the weekly chart, a pattern commonly associated with trend stabilization rather than distribution.

Weekly charts help filter intraday volatility and false breakouts. XRP price today remaining above its prior weekly low supports the view that downside momentum has slowed. Analysts monitoring market structure point to the $2.00–$2.25 range as a developing value area, where spot demand has repeatedly emerged.

This behavior contrasts with previous XRP pullbacks that failed to hold comparable levels, suggesting buyers are showing greater commitment than during earlier corrective phases.

XRP Price Target Zones and Market Caution

From a technical standpoint, the $3.50–$4.00 region represents a historically active supply zone for XRP. These levels previously coincided with elevated selling interest and should be viewed as conditional targets rather than expectations.

XRP surged 5.78% to $2.18 on January 14, reversing a recent dip to $2.00, with technical indicators suggesting further upside potential amid positive community sentiment. Source: MOLT MEDIA via X

Any move toward this range requires multiple confirmations, including a decisive break above recent highs, improving spot volume, and supportive broader market conditions. Conversely, failure to maintain support above $2.00 on a weekly closing basis would undermine bullish scenarios and reopen the possibility of extended range-bound trading.

A clean break and hold above the last major high would be required before confidence in trend continuation can materially improve..

Outlook Remains Data-Dependent

In summary, XRP remains in a consolidation phase above a technically important support level. Structural indicators, including weekly higher lows and defined demand zones, point to stabilization rather than deterioration.

XRP was trading at around 2.17, up 6.16% in the last 24 hours at press time. Source: XRP price via Brave New Coin

However, analysts stress that future direction will depend less on individual patterns and more on confirmatory signals, including liquidity expansion, sustained support holds, and broader market participation.

For now, XRP’s ability to remain above $2.00 keeps the broader XRP price forecast cautiously constructive, while resistance near $3.50–$4.00 remains a scenario-based area to monitor rather than a near-term projection.