Have you ever watched a cryptocurrency go through a rough patch and wondered if it’s finally hitting rock bottom? That’s exactly how I’ve been feeling about XRP lately. After a brutal year that saw it plunge from highs we’d only dreamed of, something shifted this week. The charts are whispering about a comeback, and the big players seem to agree.
Right now, as markets wake up on this December 26 morning, XRP is trading around $1.87. It’s down about 15% since the month started, and if you zoom out further, the drop from its peak looks even more painful. But here’s the thing – in crypto, the darkest moments often precede the strongest bounces. And several signals are lining up that suggest we might be at that inflection point.
Why XRP Could Be Setting Up for a Major Rebound
Let’s dive into what’s actually happening beneath the surface. It’s not just wishful thinking – there are concrete developments driving this potential shift in momentum.
The Bullish Wedge Pattern Taking Shape
One of the most compelling pieces of evidence comes from technical analysis. On the daily timeframe, XRP has carved out what’s known as a descending wedge – a pattern that typically signals exhaustion in a downtrend.
Picture this: the price has been making lower highs and lower lows, but each move down is getting smaller, less convincing. The selling pressure is fading. These wedges often resolve with a sharp breakout to the upside, especially when volume picks up on the attempt to push higher.
In my experience watching these patterns play out, the breakout can be explosive once that upper trendline gives way. Right now, XRP is testing resistance near $1.90. A clean break above this level would confirm the pattern and open the door to much higher prices.
Where could it go? The measured move from this wedge points toward the $2.58–$2.65 zone – territory that has acted as stubborn resistance throughout the year. From current levels, that’s roughly a 27% rally. Not bad for a token that’s been beaten down so thoroughly.
Descending wedges in downtrends have a strong tendency to resolve bullishly, particularly when accompanied by improving fundamentals and accumulation.
Whales Are Quietly Accumulating
Perhaps the most intriguing development is what’s happening with large holders. Over the past week, addresses holding between 10,000 and 1 billion XRP tokens have been steadily increasing their positions.
This isn’t retail FOMO – these are the deep-pocketed investors who tend to move markets. When whales start buying during periods of weakness, it’s often a leading indicator that smarter money sees value where others see only risk.
I’ve always found whale behavior fascinating. They don’t panic sell at bottoms like many smaller traders do. Instead, they view corrections as buying opportunities. The fact that this accumulation began just as sentiment hit rock bottom feels significant.
- Whale addresses in the 10k–1B XRP range have risen noticeably since December 22
- This tier of holders often drives major price moves
- Historical patterns show whale buying frequently precedes strong rallies
If this trend continues, it could provide substantial support beneath any near-term pullbacks and fuel the eventual breakout.
ETF Inflows Tell a Different Story
While spot trading volume has dried up – dropping from billions to under $2 billion daily – institutional interest remains robust. This week alone saw tens of millions flowing into XRP-related exchange-traded products in the United States.
Since these products launched last month, they’ve attracted over a billion dollars in cumulative inflows. More importantly, there hasn’t been a single day of net outflows. That’s extraordinary conviction from traditional investors.
This disconnect between spot market weakness and institutional buying is classic late-stage capitulation behavior. The retail crowd sells in despair while institutions accumulate patiently. We’ve seen this movie before, and it usually ends with higher prices.
Momentum Indicators Are Turning
Beyond the price action and fundamentals, the technical indicators are starting to align with a bullish thesis.
The Relative Strength Index (RSI) has dipped into oversold territory – a condition that frequently marks important bottoms. Meanwhile, measures of downside momentum are weakening significantly.
When you combine oversold conditions with a bullish pattern and accumulation, the risk/reward setup becomes quite attractive. Of course, nothing is guaranteed in crypto, but the confluence here is hard to ignore.
What Could Go Wrong?
To be fair, there are always risks. Broader market weakness could drag XRP lower before any breakout materializes. Bitcoin’s dominance has been rising, putting pressure on altcoins generally.
Additionally, if the $1.90 resistance holds firm and we see a rejection, the wedge pattern could fail, leading to new lows. Crypto is notorious for fakeouts.
That said, the current setup – with whales buying, institutions accumulating through regulated products, and a textbook reversal pattern forming – feels different from the mindless selling we’ve seen for months.
The Bigger Picture for XRP
Stepping back, XRP’s fundamentals haven’t deteriorated. The underlying network continues to process cross-border payments efficiently, and adoption by financial institutions persists despite regulatory headwinds.
The market cap has fallen dramatically from its highs, but daily settlement volume and utility remain substantial compared to many other large-cap tokens. In many ways, the price decline has outpaced any degradation in fundamentals.
This kind of disconnect often creates opportunities. When sentiment is overwhelmingly negative but the underlying asset continues functioning well, mean reversion becomes more likely.
Looking ahead to 2026, continued institutional adoption through ETFs, potential regulatory clarity, and improving macro conditions could provide tailwinds. But even in the short term, the technical setup suggests we’re due for at least a relief rally.
The most profitable opportunities often appear when the crowd has given up hope.
– Anonymous trader wisdom
Whether XRP delivers that 27% move to $2.60 remains to be seen. But the pieces are falling into place in a way that hasn’t happened for months. Sometimes in markets, that’s all you need – a spark when conditions are ripe.
I’ll be watching that $1.90 level closely over the coming days. A decisive break higher could confirm that the tide is finally turning for this long-suffering token. In crypto, patience is often rewarded, and those who recognize shifts early tend to benefit most.
Whatever happens next, it’s moments like these that make markets fascinating. The combination of technical patterns, on-chain behavior, and institutional flows creating potential turning points – this is why many of us can’t look away.
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