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XRP has approached the critical price zone.

XRP's jump to $2.17 occurred after it touched the fair value gap (FVG) zone just below $2. This zone was formed during the Nov. 21 recovery from $1.80. This retest showed that despite the broader downtrend, investors still remained active in discounted price zones.

Structurally, XRP continued to form lower highs, but the squeeze below $2.30 gave the appearance of an arc forming below a major decision point.

A day's close above $2.30 would mark the first trend reversal since July, confirming a bullish structure breakout and putting the price on a clear path towards the next cluster of liquidity at $2.58. The $2.34 to $2.42 zone has been mapped as a sell-side FVG and early profit taking is likely to occur there.

However, XRP's historical price behavior in 2025 has been characterized by strong movements between extreme liquidity zones. This means that when momentum reverses, XRP tends to break through intermediate resistances as it searches for liquidity, causing $2.58 to become an extended target.

The relative strength index (RSI) was trending slightly upward, and a regain of the 200-period simple moving average (SMA) would provide strong confirmation. Meanwhile, open interest in futures fell from $8.6 billion to $3.8 billion in the fourth quarter, showing that it can develop quickly due to thinner positioning when a directional expansion comes.