Ripple’s native cross-border token is showing signs that it may be preparing for a change in direction. After dropping to around $1.84, the price bounced and is now trading near $1.95. Analysts are watching as some early signals point toward possible buying momentum building in the background. Falling Wedge and RSI Divergence On the 1-hour chart, XRP is moving within a falling wedge pattern. This setup can often appear near the end of a downtrend. The asset touched the lower edge of the pattern before bouncing, supported by a rise in volume. At the same time, the Relative Strength Index (RSI) is rising, even though the price has stayed in a downward channel. This rising RSI is what analysts call a “ bullish divergence ,” meaning that momentum is picking up even though the chart still shows a decline. A crypto analyst, CW, explained the current setup: “$XRP is forming a downtrend. However, the RSI is rising, and buying is increasing. This indicates a bullish divergence is forming.” A break above the wedge’s top line, around $2–$2.05, would be the first sign of a possible trend reversal. Support and Resistance Levels According to chart analyst Ali Martinez, there are three key price levels to watch. Support is found at $1.78, while resistance is seen at $1.97 and $2. Until the asset breaks above these resistance levels, the downtrend remains active. 3 levels to watch for $XRP : • Support: $1.78 • Resistance: $1.97 and $2 pic.twitter.com/VZeGVncAYG — Ali Charts (@alicharts) January 22, 2026 Volume across major exchanges has risen by over 22%, reaching $6.54 billion. Open interest in XRP futures also increased by nearly 1% to $3.40 billion, while options volume climbed by more than 15% to $4.32 million (per CoinGlass’s data). Over the last 24 hours, the price has risen 2%, but it is still down 7% over the past week. Zooming out, some analysts remain focused on the broader picture. Just 3 days ago, Crypto Patel pointed out that XRP is trading above what he calls a long-term breakout zone. They noted: “#XRP is trading above a confirmed multi-year breakout zone after completing a long accumulation phase.” Patel mentioned a price expansion from $0.60 and shared targets ranging from $3.50 to over $10. They also stated that if XRP closes below $1.30 on the higher time frame, this longer-term setup could be invalidated. Additionally, over the past 12 months, XRP reserves on Binance have dropped by nearly 45%, falling from $10.16 billion to $5.55 billion, as CryptoPotato reported yesterday. This shift shows more XRP moving into private wallets, which may suggest longer-term holding by users. The post Ripple (XRP) Reversal Alert: Why $2 Is the Critical Level Now appeared first on CryptoPotato .