XRP at Key Support: High-Reward Setup Emerges

XRP currently trades around the $1.60 area, a level that has transformed from a historical resistance point into a pivotal support zone. According to the analysis, this band between $1.55 and $1.60 aligns with the midpoint of the token’s major breakout that began in November 2024. The significance of this level was underscored in late January when price briefly dipped toward $1.50 before closing the month above $1.60. Some market participants interpreted this action as a ‘liquidity sweep,’ a move that clears out short-term stop orders and can often precede a sustained directional move, provided fresh buying interest materializes.

Crypto analyst Scott Melker, known online as ‘The Wolf Of All Streets,’ has highlighted this setup as exceptionally clean from a risk management perspective. He notes that the proximity to this well-defined support allows traders to place a protective stop-loss order between $1.45 and $1.50. This creates a scenario where potential losses are tightly controlled, limiting downside exposure to approximately 6-9% from current levels. In the volatile world of cryptocurrency trading, such a measured risk profile is a rare and attractive proposition for technical traders.

To understand the current setup, one must examine XRP’s recent price history. The token moved sideways throughout much of 2023 and 2024 before decisively breaking out from a $0.50–$0.60 range in November 2024. This breakout ignited a powerful rally that propelled XRP to a peak of $3.66 in July 2025, establishing a new, higher market structure. However, those substantial gains also created large pockets of profit-taking pressure. Reports indicate that repeated failed attempts to sustain prices above the $3.50 level signaled weakening demand, which ultimately contributed to the corrective decline back to the current $1.60 region.

The potential upside trajectory, should the support hold and a bounce occur, is layered with distinct resistance levels. The initial target for any recovery would be a retest of the $2.00 psychological barrier. Beyond that, the analysis identifies a supply zone between $2.50 and $2.60, where selling pressure is expected to increase. The final and most significant hurdle would be near the $3.00 area and the previous highs around $3.66. This clear roadmap provides traders with defined profit-taking levels, contrasting sharply with the tight, predefined stop-loss, creating the asymmetric risk/reward profile Melker emphasizes.

While the technical setup for XRP appears compelling on paper, its success is not guaranteed and hinges on broader market dynamics. A critical caveat noted in the analysis is the current absence of volume confirmation for the bullish thesis. A support hold without visible, substantial buying volume on the trading tape is considered fragile and susceptible to failure. Price action alone is not enough; it must be validated by strong capital inflow to signal genuine conviction from buyers.

Furthermore, the fate of this XRP setup is inextricably linked to the wider cryptocurrency market environment. Broader liquidity conditions in US markets and the overall risk appetite for digital assets will play a major role in determining whether any bounce from the $1.60 support can sustain momentum. In periods of market-wide risk aversion, even the most pristine technical patterns can break down. For Scott Melker, the core principle is not about predicting every market twist but about identifying and executing on trades where losses are controlled and potential gains are meaningful. The XRP scenario at $1.60, with its defined support, tight stop, and clear upside targets, represents precisely that type of rare opportunity in today’s volatile crypto landscape.