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XRP Price Prediction: XRP Consolidates as DeFi Narratives Expand Across Blockchains

XRP Price Prediction: XRP Consolidates as DeFi Narratives Expand Across Blockchains

CoinEditionCoinEdition2026/01/12 13:24
By:CoinEdition

XRP continued to trade in a consolidation phase after a strong late-year rally, with price stabilizing near the $2.04 area on the 4-hour Bitstamp chart. The market appeared to pause rather than reverse, as traders assessed prior gains and adjusted leverage exposure. 

Consequently, short-term volatility compressed while the broader structure remained constructive. Higher-timeframe trends still reflected higher highs and higher lows, suggesting the recent pullback acted as digestion, not distribution. However, near-term direction increasingly depended on whether buyers could reclaim nearby resistance zones.

On the 4-hour timeframe, XRP hovered just below key moving averages, signaling cooling momentum. Besides that, narrowing price ranges pointed toward an upcoming expansion phase. 

XRP Price Prediction: XRP Consolidates as DeFi Narratives Expand Across Blockchains image 0

Immediate resistance clustered between $2.09 and $2.11, where the 50-period EMA aligned with the 0.5 Fibonacci retracement. A decisive break above this band would likely restore bullish momentum. Additionally, $2.17 emerged as the next upside trigger, followed by the $2.28 to $2.30 supply zone.

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Support remained equally defined. The $2.02 to $2.01 region provided the first defense, reinforced by the 0.382 Fibonacci level. Hence, holding above the $2.00 psychological mark remained critical. A failure there could extend the retracement toward $1.92 to $1.93, where buyers previously defended structure.

XRP Price Prediction: XRP Consolidates as DeFi Narratives Expand Across Blockchains image 1 Source:

XRP futures data showed open interest expanding sharply during the late-2025 rally, confirming fresh leveraged participation. However, after peaking, open interest cooled while price consolidated. 

Consequently, partial deleveraging reduced speculative excess without erasing market interest. Open interest stabilized near the $4.0 billion zone, remaining elevated compared with historical norms.

XRP Price Prediction: XRP Consolidates as DeFi Narratives Expand Across Blockchains image 2 Source:

Spot flow data painted a more cautious picture. Netflows stayed largely negative, reflecting ongoing exchange outflows and seller dominance. Moreover, sharp outflow spikes often aligned with local price weakness. Although brief inflow bursts appeared, they lacked follow-through. Toward recent sessions, netflows remained negative near $28 million, while price hovered near $2.05.

Beyond price action, broader ecosystem developments influenced sentiment. In a recent discussion, Charles Hoskinson stated that Cardano aimed to support Bitcoin and XRP-based DeFi through its Midnight protocol. 

JUST IN: #Cardano $ADA Founder Charles Hoskinson says "we got Bitcoin DeFi coming, XRP DeFi coming, Midnight connects us to all the other blockchains, and we add privacy to all those connection points, so we have a lot to add and offer."

— Angry Crypto Show (@angrycryptoshow)

He explained that the architecture allowed assets from other networks to interact with smart contracts privately. Additionally, he expressed interest in collaborating with Ripple following a successful airdrop initiative. He also confirmed upcoming support through Lace Wallet.

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Key levels remain clearly defined for XRP as price consolidates after its recent rally. 

Upside levels include $2.09–$2.11 as the first resistance cluster. A sustained break above this zone could open a move toward $2.17, followed by $2.28–$2.30 as the next major supply area. 

On the downside, immediate support sits at $2.02–$2.01. This zone aligns with short-term Fibonacci support and remains critical. Below that, $2.00 stands as a psychological level. Failure there could expose XRP to $1.92–$1.93.

The technical structure suggests XRP is compressing inside a post-impulse consolidation range. Volatility has narrowed, often preceding range expansion. Momentum has cooled on lower timeframes, yet higher-timeframe structure still favors higher highs.

XRP price outlook hinges on whether buyers can defend the $2.00–$2.02 region. A reclaim of $2.11 would likely trigger renewed upside momentum toward $2.17 and higher. 

However, losing $2.00 could deepen the retracement toward $1.92. For now, XRP remains at a pivotal inflection zone. Directional conviction and volume expansion will define the next leg.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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