XRP Price Holds Strong at $1.89, Breaks Descending Trend Towards $2.50

XRP has recently been under the spotlight as analysts evaluate whether the asset is entering a phase of stabilization after a prolonged period of consolidation rather than an immediate breakout. Despite trading below $2.00 for several months, recent developments indicate a potential easing of downward pressure. Key support at $1.89 has been crucial, with a breakout from a descending trendline sparking interest in revisiting short-term price prediction models.

ChartNerdTA, a technical analyst, highlighted the significance of the $1.89 support level, emphasizing its role in determining the broader market trend. The analyst noted that as long as XRP remains above this support base, the bulls are in control, with a potential upside towards $2.50. Each test of this support zone following XRP’s decline from $3 has shown reduced selling pressure, indicating increased buyer commitment. On-chain data from Santiment also supports this view, showing decreased token distribution and long-term holder engagement driven by a utility-focused adoption narrative.

Breaking above a descending trendline adds to bullish sentiment surrounding XRP. Analysts are closely watching the Relative Strength Index (RSI) on higher timeframes for confirmation. A potential bullish crossover near the 41–42 zone could signal a transition from a bearish to a neutral trend regime. However, RSI crossovers in range-bound markets can sometimes generate false signals without follow-through above resistance.

Despite these positive technical developments, XRP’s price remains below $2.00, trading between $1.88 and $1.95 in January. Daily indicators present mixed signals, with short-term moving averages indicating weakness and RSI readings suggesting a neutral stance. The current market phase is characterized as consolidation rather than a breakdown, especially as volatility remains low.

Beyond technical analysis, XRP’s price is influenced by macroeconomic factors and institutional activity. XRP-linked exchange-traded products have seen significant historical inflows exceeding $1.2 billion, although recent sessions have shown fluctuating activity with intermittent outflows.

In conclusion, XRP’s recent technical developments, including key support at $1.89 and a breakout from a descending trendline, have generated interest among analysts. Despite remaining below $2.00, the asset’s price reflects a phase of consolidation with mixed market sentiment. Fundamentals, such as exchange-traded product flows and institutional activity, continue to shape XRP’s price trajectory alongside technical factors.