Will Taylor Discusses XRP's Price Rally and Potential Targets

XRP has surged approximately 25% from its recent lows, leading Will Taylor, co-founder of Cryptoinsightuk, to revisit the discussion on whether XRP is entering a larger bullish impulse toward the $8–$12 region, or if this is merely a short-term spike that will need to correct.

Key Takeaways

XRP has surged approximately 25% from its recent lows, sparking debate about its future price movements.
Technical analysis indicates mixed signals with overstretched RSI levels and potential price targets ranging from $3.13 to $12.
The current market conditions present multiple interpretations of XRP's price action, making predictions challenging.
Continued strong price momentum and breakout above resistance could support bullish scenarios, while overbought conditions may prompt a consolidation phase.

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Taylor expressed uncertainty about the immediate future while maintaining a long-term bullish outlook. The source of this hesitation stems from conflicting signals: although lower timeframes appear overstretched, XRP often continues to rise following momentum increases, instead of reverting to mean levels.

Analyzing XRP Technical Charts

Looking at the hourly chart, Taylor observed that XRP's Relative Strength Index (RSI) frequently reached overbought levels and noted that it has recently “flipped bearish on the hour," a typical short-term warning that tends to indicate potential pullbacks or a period of sideways movement.

On the four-hour chart, he described the RSI as “one of the highest I have ever seen.” He reflected on previous instances when XRP reached similar overheated conditions. In one case, XRP pulled back briefly before gaining another “approximately 36%,” while in another instance, it rallied after consolidation for an additional “129%.”

Taylor noted that although overbought signals can indicate selling in many markets, XRP's most powerful upward movements often begin at overbought levels. “When XRP's daily RSI gets overbought, XRP typically shoots up in price,” he stated, arguing against the instinct to counter strong momentum.

On the daily chart, he pointed to a significant technical shift, noting that XRP closed above a previous resistance level that had constrained prices for several days. He emphasized how quickly XRP broke above this resistance after several failed attempts in previous weeks: “we break straight through.”

Price Projections for XRP

From that point, Taylor shared his reasoning regarding potential price increases based on historical RSI patterns. He referred to three earlier daily overbought signals in the current cycle that led to considerable price extensions, including a 414% rise in one case and 36% and 49% in others. He framed this as pattern recognition rather than forecasting: “this is complete fact,” he stated, highlighting the historical correlation between daily RSI overbought levels and subsequent price increases.

If there is a smaller rise of around 39%, XRP could reach approximately $3.13. A larger extension has the potential to revisit all-time highs near $3.66. The most ambitious forecast, which aligns with his overall wave count theory, could push XRP “toward our goals of $8 to $12.”

Taylor mentioned that the market is currently at a juncture where multiple Elliott Wave interpretations can be considered. He suggested that XRP might be undergoing an ABC-style move from the lows, nearing a fifth wave upward, or still progressing in an extended third wave within a larger five-wave advance. “At this moment, my honest answer is that I don't know,” he conveyed.

Even without firmly committing to a specific wave count, Taylor noted the “impulsive” nature of the rally, citing “the length of these candles supported by volume” across exchanges. He suggested that the current move appears distinct from earlier correction-driven price actions. The critical test for him is whether this momentum continues in the upcoming days, as he wants to observe “really strong candles” indicate that XRP is beginning a new upward leg instead of just squeezing and pausing.

Another aspect he is monitoring is liquidity. Taylor indicated that XRP has “taken most of our upside liquidity” within the hourly timeframe and pointed out downside liquidity zones between $1.70 and $1.66. In established trends, he usually anticipates an upward continuation, but these downside liquidity pools, coupled with an overstretched RSI and resistance in XRP's relative pairs, prevent him from seeing the current price as a clear new entry point.

Taylor noted these mixed signals have prompted him to consider reducing leverage on his XRP position, revealing he is “90% spot.” His conclusion is straightforward: XRP has demonstrated “a fantastic aggressive move,” but the next few sessions are crucial.

29 minutes of $XRP TA. pic.twitter.com/aJ4yiC7Sdr
— Cryptoinsightuk (@Cryptoinsightuk) January 6, 2026

If XRP continues to record strong daily candles and the relative pairs break resistance levels, Taylor's $8–$12 price target remains a valid bullish case. On the other hand, if similar overbought signals and nearby liquidity pockets persist, it increases the likelihood of XRP undergoing a consolidation period or retracement before any substantial upward movement can initiate.

As of the latest update, XRP is trading at $2.25.

XRP price chart XRP breaks back above the essential red zone, 1-week chart | Source: XRPUSDT on TradingView.com