XRP (XRP) is drawing renewed attention from traders after months of sideways movement, with technical analysts identifying chart patterns that could signal a potential rally toward $4 if the token breaks above key resistance near $2.10.
What Happened: Chart Pattern Sparks Breakout Talk
Analyst DonWedge posted a half-day chart on TradingView on Jan. 21, noting that XRP "looks good" based on a downward-sloping channel pattern that mirrors previous price behavior. The current formation resembles one that preceded a sharp rally months earlier, when a similar decline lasting roughly six months gave way to a sudden upward move once selling pressure faded.
Fresh lows have hugged the bottom of a familiar trading range.
DonWedge projects that a clean daily close above the multi-month trendline resistance at $2.10, combined with rising volume, could launch XRP toward $4 — requiring roughly a 100% gain from current levels.
Traders caution that breakouts without volume confirmation often fail, leading to false signals and extended consolidation.
Also Read: What Drove Seeker's 200% Spike While Airdrop Recipients Rushed To Sell?
Why It Matters: Analysts Eye Pivotal Year
Analyst ChartNerd called 2026 a "telling year" for XRP in a Jan. 18 post, noting the token has accumulated above its prior 2021 highs for more than a year following a macro breakout in the fourth quarter of 2024.
"The whole of 2025 was sideways, boring, and a test of even the most durable minds," ChartNerd wrote. "Compression typically leads to expansion."
The prolonged consolidation has tested investor patience. A decisive move above $2.10 with strong momentum would align with the patterns both analysts have outlined, though the market remains cautious until clearer signals emerge.
Read Next: Paul Atkins Confirms Joint SEC-CFTC Meeting To Advance Trump's Crypto Capital Vision