XRP (XRP) is once again attracting the attention of traders after months of sideways movement, with technical analysts identifying chart patterns that could signal a potential rally towards $4 if the token breaks through key resistance near $2.10.
What happened: a chart model reignites discussions about a bullish breakout
Analyst DonWedge published a 12-hour chart on TradingView on January 21, noting that XRP "looks good" based on a bearish channel reflecting previously observed price behavior. The current formation resembles that which preceded a sharp rally a few months ago, when a similar pullback of about six months gave way to a brutal upward movement once selling pressure eased.
New lows have formed near the lower boundary of a familiar trading range.
DonWedge projects that a net daily close above the multi-month downward trend line at $2.10, combined with an increase in volumes, could propel XRP to $4 — requiring a gain of about 100% from current levels.
Traders warn that breakouts without volume confirmation often fail, leading to false signals and prolonged consolidation.
Also read: What Drove Seeker's 200% Spike While Airdrop Recipients Rushed To Sell?
Why it matters: Analysts are looking at a pivotal year
Analyst ChartNerd called 2026 a "revealing year" for XRP in a post on January 18, noting that the token has accumulated above its 2021 highs for over a year after a macro bullish breakout in the fourth quarter of 2024.
"The entire year 2025 has been lateral, boring, and a test even for the strongest minds," wrote ChartNerd. "Compression generally leads to expansion."
This long phase of consolidation has tested investors' patience. A decisive move above $2.10 with strong momentum would align with the figures described by the two analysts, even if the market remains cautious while waiting for clearer signals.
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