XRP sits at a crossroads. Buying and selling across the $1.6 space after a steep run larger and a later pullback, the token now rests on a weekly assist band that merchants are watching carefully.
In response to crypto analyst Scott Melker, this is among the cleaner danger/reward setups in crypto proper now — a small cease can restrict losses whereas a bounce might supply significant features.
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Help Zone Holds The Key
Based mostly on reviews, the zone round $1.55 to $1.60 is necessary. It strains 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 sort of motion can presage both a bounce or a deeper transfer, relying on whether or not recent shopping for exhibits up.
What Historical past Exhibits
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 larger 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 most effective danger/reward you get on an asset. Simple to chop free with a small loss if assist fails. pic.twitter.com/wySapwsnT0
— The Wolf Of All Streets (@scottmelker) January 31, 2026
These features set a better construction, however in addition they left giant pockets of revenue taking above present ranges. Experiences 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
In response to Scott Melker, a.ok.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 aspect, a restoration would possible take a look at $2.00 first, then run into provide round $2.50–$2.60, earlier than dealing with heavier resistance close to $3.00 and the previous highs.
That path is simple on paper, however market context adjustments outcomes. Quantity affirmation is absent from lots 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 also play a serious position in whether or not the bounce can maintain itself.
Associated Studying
XRP’s Candy Spot: Small Danger, Huge Upside
For Melker, setups like XRP’s present degree are uncommon in crypto proper now — an outlined assist, a decent cease, and clear upside targets create a state of affairs the place the potential reward outweighs the chance.
He emphasizes that merchants don’t have to predict each twist available in the market; as an alternative, specializing in trades with managed losses and significant features could be the distinction between surviving and thriving in unstable situations.
In XRP’s case, the near-term danger is small relative to the attainable rebound, making it a setup many are watching carefully.
Featured picture from Unsplash, chart from TradingView