XRP price forecast and signs of a potential rebound

January 24, 2026 Amelia Rhodes 0 Comments

XRP price forecast starts with growing attention on whether XRP can repeat its previous explosive rallies as market conditions resemble earlier recovery phases. Recent derivatives data suggests that bearish positioning may be building beneath the surface, creating a setup where price movement could accelerate quickly if sentiment shifts. Traders are closely watching funding rates, key technical levels, and historical patterns to determine whether XRP is preparing for another major move.

XRP price forecast illustrated by a one-month XRP price chart showing recent consolidation and short-term volatility

Viewed over the past month, XRP’s price action reflects a market that is no longer accelerating in either direction. The chart shows repeated attempts to move higher being met with hesitation rather than sharp rejection, suggesting uncertainty rather than aggressive selling. This type of structure often appears when participants are reassessing risk after volatility cools, not when conviction is strong on either side. In practice, it points to positioning being adjusted gradually rather than decisively.

XRP price forecast and the role of latent buying pressure

A central theme in the current XRP price forecast is the presence of latent buying pressure driven by negative funding rates. Funding rates in perpetual futures markets represent the cost traders pay to hold leveraged positions. When funding turns negative, short sellers are paying long traders, indicating that bearish bets dominate the market.

This condition often signals that the market is leaning heavily to one side. When too many traders are short, even a modest price increase can force them to close positions. This creates automatic buying, which can push prices higher in a short period of time. This hidden demand is referred to as latent buying pressure.

XRP has spent extended periods with negative funding rates in recent months. Similar conditions appeared before earlier price recoveries, where bearish traders were caught off guard by sudden upward moves. While negative funding alone does not guarantee a rally, it increases the probability of sharp price reactions if momentum shifts.

How historical patterns influence the XRP price forecast

Historical price behavior plays an important role in shaping the XRP price forecast. In previous market cycles, XRP often consolidated within a wide range before breaking higher once sentiment flipped. During those periods, funding rates remained negative for weeks while price moved sideways, suggesting traders expected continued downside that never arrived.

Eventually, once XRP reclaimed key support levels, the accumulated short positions were forced to unwind. This resulted in rapid price expansions that exceeded expectations. These historical rebounds are now being compared to the current market structure.

At present, XRP is again trading within a long-term range that has been in place for more than a year. The resemblance to earlier setups has led some analysts to argue that XRP may be forming another base rather than entering a prolonged decline. However, confirmation depends on how price reacts around major technical levels.

Key support and resistance levels in the XRP price forecast

The XRP price forecast heavily depends on how the asset behaves near critical support and resistance zones. One of the most important support areas lies between $1.80 and $2.00. This zone has acted as a demand area multiple times, with buyers stepping in whenever price approaches it.

This support aligns with the lower boundary of a long-term sideways channel. Holding above this range suggests that buyers are defending XRP and preventing deeper pullbacks. If this support remains intact, it strengthens the argument for a potential upside scenario.

On the resistance side, the $2.22 level stands out as a major barrier. This area corresponds with a key long-term moving average that often acts as a trend filter. A successful break and hold above this level could shift market sentiment from neutral to bullish.

If XRP fails to hold the $1.80 support, the XRP price forecast becomes more cautious. A breakdown below this range could open the door to a deeper correction toward longer-term support near $1.40. Such a move would weaken the latent buying pressure narrative and increase downside risk.

Funding rates and their impact on the XRP price forecast

Funding rates remain one of the most watched indicators in the XRP price forecast. Persistent negative funding suggests that traders continue to expect lower prices. Ironically, this pessimism can fuel upside if price begins to rise.

When price increases while funding stays negative, short sellers are pressured from two directions. They pay funding fees while also facing unrealized losses. If price crosses key resistance levels, forced liquidations can trigger a chain reaction of buying.

However, funding rates should not be viewed in isolation. They reflect leveraged trader sentiment, not spot market demand. Without confirmation from price structure and volume, negative funding alone cannot sustain a rally. It works best when combined with technical breakouts and improving market conditions.

Broader market sentiment and XRP price forecast risks

The XRP price forecast is also influenced by overall cryptocurrency market sentiment. Even with favorable funding and technical setups, XRP may struggle if the broader market remains weak. Major assets like Bitcoin often dictate risk appetite across the crypto space.

External factors such as regulatory developments, macroeconomic conditions, and shifts in investor confidence can also impact XRP’s trajectory. Sudden changes in sentiment can override technical signals in either direction.

Risk management remains essential. Traders should be aware that sideways markets can persist longer than expected, even when conditions appear favorable. False breakouts and sudden reversals are common in highly leveraged environments.

Editor’s View: Why sentiment often lags price reality

Markets often reveal their turning points not through headlines, but through hesitation. When prices move sideways after a sharp decline, traders tend to anchor to recent losses and expect continuation rather than reversal. This creates an environment where bearish positions feel safer than they actually are, even as downside momentum fades. In those moments, sentiment can remain negative longer than price action justifies, allowing pressure to quietly build beneath the surface.

Conclusion: A balanced XRP price forecast

The XRP price forecast presents a balanced outlook based on current data. Negative funding rates and crowded short positions suggest latent buying pressure may be building. Historical patterns show that similar setups have preceded strong rebounds in the past.

At the same time, key technical levels must hold for the bullish case to remain valid. Support between $1.80 and $2.00 and resistance near $2.22 will likely determine XRP’s next major move.

While upside potential exists, risks remain if support fails or broader market conditions deteriorate. Traders and investors should combine funding data, technical analysis, and market context when evaluating XRP’s future direction.

Disclaimer: This content is for informational purposes only and does not constitute financial advice.

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