Ripple’s digital asset XRP has finally managed to break a three-month downtrend following an impressive 18% increase in its value. This technical move allowed it to overcome the critical resistance of 2.20 dollars, capturing the attention of global analysts this Monday, January 5, 2026. According to experts, the XRP price prediction now points to an ambitious target of 5 dollars based on Elliott Wave Theory.
This rally is especially significant because the 2.00 dollar level had acted as an insurmountable barrier since 2017. Every previous attempt to surpass it ended in massive rejections that returned the price to lower levels during previous cycles. However, the annual close above this mark suggests a definitive exhaustion of the long-term supply in the market. Prolonged consolidation under this historic resistance usually precedes extremely powerful and rapid revaluation movements for the asset.
On the other hand, data from SosoValue reveals that the asset recorded the second largest inflow into crypto ETFs in the US recently. With 43.16 million dollars in cumulative flows, XRP surpassed Solana’s entry volume by four times this week alone. Likewise, these institutional purchases are actively absorbing the circulating supply available on exchange platforms. The buying pressure from exchange-traded funds drives investor confidence toward new annual highs in the sector.
The end of seller dominance and the beginning of technical expansion
Furthermore, the weekly chart shows a clear transition from a corrective phase toward one of trend continuation. The breakout of the descending trend line is the most important technical development observed during this first quarter. It indicates that sellers who dominated the market in the last quarter of 2025 have lost their hegemony. The horizontal support established at 1.80 dollars functioned as an unbreakable demand floor for the bulls during the consolidation.
On the other hand, momentum indicators such as the RSI show a solid recovery from previous oversold levels. The nine-week moving average is beginning to curve upward, reinforcing the thesis of an exhaustion of the bearish momentum. It is also observed that the next critical obstacle lies in the 3.00 to 3.05 dollar range. A weekly close above this level would accelerate the momentum dramatically toward the all-time high of the asset.
Will institutional adoption lead XRP toward the five-dollar mark?
In this way, the long-term projection of 5 dollars for the first half of 2026 appears technically justified today. This movement will depend on the continuity of flows into ETFs and global macroeconomic stability in 2026. If the narrative of Real World Assets (RWA) continues to gain traction, XRP will be one of the main beneficiaries. Ripple’s payment infrastructure continues to be a fundamental driver for the mass adoption of blockchain technology globally.
To conclude, the current environment favors not only the main assets but also emerging projects like Pepenode. These types of games based on virtual mining are capturing speculative capital seeking exponential returns in the short term. However, the main attention of large investors remains focused on the strength shown by the XRP ecosystem. The success of the cryptocurrency will depend on transforming its current technical strength into an XRP price prediction that becomes a tangible reality.
