Market Strategist: XRP Is At the Point for Major Price Expansion. Here’s the Signal

Markets often conceal their most significant movements, building tension through periods of consolidation, frustration for participants, and divergence from broader trends before a forceful resolution. Uncertainty is a common element in the cryptocurrency space. XRP is currently navigating such a complex phase, characterized by a stagnant price, market noise, and traders anticipating a breakout.

This underlying tension was amplified after a technical comparison shared by STEPH IS CRYPTO garnered considerable attention within XRP communities. The strategist identified structural similarities between XRP's current multi-day consolidation pattern and the positioning of major U.S. equity indices prior to their significant upside expansions following 2022. While traditional markets have already experienced these upward movements, XRP has yet to follow suit, creating a divergence that is now central to market discussions.

The Technical Parallel Driving the Narrative

Steph's analysis is based on XRP's three-day chart, which illustrates prolonged consolidation near historically significant price levels. He drew a parallel between this structure and the basing phases observed in the NASDAQ, S&P 500, and Dow Jones indices before they transitioned into sustained bullish expansions. In each of these historical instances, prices compressed for extended durations with subdued trading volumes, only to accelerate sharply once liquidity conditions improved.

As of mid-January 2026, XRP is trading around the $2 mark. Despite multiple attempts, the asset has not yet achieved a decisive upward breakout. This delay, according to Steph, mirrors the same "lag phase" that equities exhibited before their upward repricing, suggesting that XRP may possess unresolved upside potential.

Macro Shock and the January Sell-Off

The bullish technical comparison emerged shortly before XRP experienced a price decline, falling to approximately $1.84 on January 19, 2026. Currently, XRP is trading at $1.98, with a market capitalization of $124.82 billion.

XRP's price drop was attributed to resurgent fears regarding tariffs and uncertainty surrounding the Federal Reserve's future monetary policy decisions. This macroeconomic environment placed pressure on risk assets and triggered approximately $40 million in liquidations across XRP derivatives markets. While this decline introduced short-term bearish momentum, it did not fundamentally disrupt the broader structural framework supporting XRP.

Market analysts continue to interpret the recent drop as a volatility event rather than a definitive trend failure. Many are now focusing on the $2.18 level as a critical resistance zone. A sustained recovery and reclaim of this area would signal a potential market recovery and reassert bullish control over XRP's price trajectory.

Why XRP’s Lag Still Matters

XRP's delayed price reaction is particularly noteworthy, especially following the formal conclusion of the Ripple-SEC legal case in 2025, which removed a significant regulatory impediment. While equities and other risk assets have already repriced higher, XRP has not yet fully reflected this shift. This lag suggests that the current price stagnation is a temporary phase rather than an indication of fundamental weakness.

What the Signal Actually Implies

Steph's technical comparison does not guarantee an immediate price rally for XRP. The asset's price is currently compressed, indicating a potential for a significant breakout. If historical patterns serve as a guide, such consolidation phases typically resolve with substantial price expansion rather than prolonged stagnation, making the upcoming price movement critical for defining XRP's medium-term trajectory.