XRP sits at a crossroads. Trading around the $1.6 area after a steep run higher and a later pullback, the token now rests on a weekly support band that traders are watching closely.
According to crypto analyst Scott Melker, this is one of the cleaner risk/reward setups in crypto right now — a small stop can limit losses while a bounce could offer meaningful gains.
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Support Zone Holds The Key
Based on reports, the zone around $1.55 to $1.60 is important. It lines up with the midpoint of the breakout that began in November 2024 and has acted as resistance before flipping to support.
When price briefly dipped toward $1.50 and then closed January above the $1.60 mark, some traders read that as a liquidity sweep that cleared short orders. That kind of action can presage either a bounce or a deeper move, depending on whether fresh buying shows up.
What History Shows
XRP moved sideways in 2023 and much of 2024 before breaking out from roughly $0.50 to $0.60 in November 2024. A fast advance followed, carrying price toward the $2.00 area and then higher into the $3.66 peak in July 2025.
Crazy chart.
Trading exactly at the last meaningful support on the chart before a huge air pocket.
For traders, this is about the best risk/reward you get on an asset. Easy to cut loose with a small loss if support fails. pic.twitter.com/wySapwsnT0
— The Wolf Of All Streets (@scottmelker) January 31, 2026
Those gains set a higher structure, but they also left large pockets of profit taking above current levels. Reports say that repeated failed attempts above $3.50 marked weakening demand, which helped trigger the current drop back to the $1.6 region.
Tight Downside, Open Upside
According to Scott Melker, a.k.a. “Wolf of All Streets”, traders can manage risk with a stop between $1.45 and $1.50. That makes the downside measured.
On the flip side, a recovery would likely test $2.00 first, then run into supply around $2.50–$2.60, before facing heavier resistance near $3.00 and the old highs.
That path is straightforward on paper, but market context changes outcomes. Volume confirmation is absent from many of the bullish takes; a support hold without visible buying on the tape is fragile.
Broader liquidity in US markets and risk appetite for crypto will also play a major role in whether the bounce can sustain itself.
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XRP’s Sweet Spot: Small Risk, Big Upside
For Melker, setups like XRP’s current level are rare in crypto right now — a defined support, a tight stop, and clear upside targets create a scenario where the potential reward outweighs the risk.
He emphasizes that traders don’t need to predict every twist in the market; instead, focusing on trades with controlled losses and meaningful gains can be the difference between surviving and thriving in volatile conditions.
In XRP’s case, the near-term risk is small relative to the possible rebound, making it a setup many are watching closely.
Featured image from Unsplash, chart from TradingView