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On Jan. 6, 2026, XRP surged 12.6% to $2.41, consolidating near $2.38 and securing a nearly 30% year-to-date gain. The rally triggered the liquidatation of $25 million in XRP short bets.
The Geopolitical Spark
XRP continued its aggressive uptrend in the early hours of Jan. 6, 2026, climbing to a high of $2.41 before entering a minor retracement and consolidating around $2.38. As of Jan. 6 12:00 am EST, XRP was up by 12.6%, distinguishing itself as the only high-cap digital asset to post double-digit gains during this window.
This surge pushed its market capitalization to $144 billion, widening the gap between it and BNB, which XRP recently unseated to reclaim its position as the fourth-largest digital asset. With this latest move, XRP has secured a gain of approximately 30% since the start of the year. The asset’s rally comes amidst a broader market expansion that has seen the total crypto economy add over $250 billion in value since Jan. 1.
This momentum significantly accelerated following the Jan. 3 military operation in Venezuela, where U.S. forces captured leader Nicolás Maduro. The resulting geopolitical tension reignited demand for alternative assets, with many investors rotating capital into the crypto market while traditional financial venues were closed for the weekend.
Read more: XRP Hits $2.28 High: Can the Rally Clear the Critical $2.35 Resistance?
The ‘Short Squeeze’ Effect
As often happens with sudden volatility, the rally triggered a massive “wipeout” for bears. XRP’s surge to $2.40 resulted in the liquidation of roughly $25 million in short bets. On a macro scale, the broader crypto market saw over $320 million in short positions liquidated within a 24-hour period, further fueling the upward “squeeze” as short-sellers were forced to buy back assets at higher prices.
XRP’s break above $2.35 is technically significant because it aligns with the 200-day exponential moving average (EMA)—a level that has acted as a ceiling for much of the past year. By sustaining its position at $2.38–$2.40, XRP is attempting to flip this previous resistance into a solid floor of support.
If XRP can secure a daily close above $2.42, the next logical price targets are the $2.60–$2.70 range by February. Many analysts suggest a “Wyckoff Reaccumulation” model is currently playing out. If the “creek” (the final major resistance line) is cleared, the $3.00 psychological level becomes a viable target as institutional ETF inflows continue to tighten the available supply.
However, a failure to hold the $2.35 zone could result in a bull trap. If the price slips back below $2.26, it would signal a bearish retest of the moving averages, potentially pushing the asset back into its prior consolidation range between $2.00 and $2.15. While the momentum is undeniably bullish, the relative strength index ( RSI)—currently sitting at 87—is flashing major overbought signals. Historically, when the daily RSI exceeds 70, XRP often undergoes a 5–10% “mean reversion” to allow the indicator to reset.
Still, during periods of extreme news-driven volume or institutional buying, the RSI can remain in overbought territory for several days while the price continues to climb. If XRP clears the $2.42 resistance with high volume, it may ignore the overbought signal and push toward the $2.53 extension before a significant correction occurs.
FAQ 💡
- Why did XRP spike to $2.41? XRP surged 12.6% as geopolitical tensions in Venezuela fueled global demand for crypto assets.
- What is XRP’s market position now? Its $144B market cap widened the gap with BNB, securing fourth place among global digital assets.
- How did this impact short traders? Over $25M in XRP shorts and $320M across crypto were liquidated, driving a powerful squeeze.
- What are the next price targets regionally? Analysts eye $2.60–$2.70 by February, with $3.00 possible if ETF inflows tighten supply.
