XRP Geared Up for an Unexpected Rally, According to Analysts

XRP is currently trading at approximately $1.87, having dipped below the $2 threshold after a recent decline. Market trackers indicate that the token has experienced a drop of about 30% in the fourth quarter of 2025. However, some analysts suggest that this current downturn could be part of a larger pattern that often precedes significant rallies.

Key Takeaways

XRP is trading at $1.87, having dropped about 30% in Q4 2025.
Historical patterns indicate potential accumulation phases that could precede a rally.
Key support levels have emerged in the $1.8–$2 range.
Legal developments and market conditions could significantly influence XRP’s trajectory.
The token’s utility is emphasized as a critical factor for its long-term value and adoption.

XRP

Investors and commentators are closely monitoring XRP's price movements as discussions grow about whether it is poised for a rebound or if further declines are likely.

Understanding XRP's Historical Accumulation Cycles

According to technical analysts, XRP has demonstrated various accumulative phases in previous cycles. One notable consolidation lasted from early 2015 to early 2017. During this period, there was a steep fall in XRP’s price from $0.00885 to $0.005, followed by a strong rally that brought it back up to roughly $3.30 by January 2018.

A second accumulation cycle took place from mid-2023 to late 2024, where prices fell from $0.62 to $0.50 between August and November, before surging back to about $3.4 in January 2025. Analysts are referencing these historical movements as potential indicators for XRP’s future performance.

XRP market cap currently at $113 billion. Chart: TradingView

Current Downtrend and Support Levels

Reports indicate that since October 2025, XRP's price has decreased from around $2.8 to its current level close to $1.84. Technical analysts have pointed out that the $1.8–$2 range, which previously functioned as resistance, may now be providing support following recent trading activities.

One analyst described the current market situation as an ABC reset—a short-term corrective pattern often seen before an upward trend. Traders remain divided, with some believing a solid base is forming, while others interpret the decline as an indication of ongoing selling pressure.

The most hated $XRP rally is about to start! 👇
— STEPH IS CRYPTO (@Steph_iscrypto) December 16, 2025

Interestingly, some community members believe that legal and market developments could significantly affect XRP’s next phase. Key events such as the potential resolution of a long-standing SEC case, the launch of XRP-focused Exchange-Traded Funds (ETFs), and pending legislation known as the Clarity Act have been mentioned as potential catalysts for shifting investor sentiment.

One market analyst even suggested that this rally might become the “most hated,” describing a swift price increase that occurs while many investors are still skeptical and frustrated.

Several observers have emphasized the importance of focusing on XRP's real-world applications. According to Aljarrah, the token's true value lies in its utility and enhanced liquidity, which facilitate larger transactions with fewer tokens, thereby improving overall payment efficiencies.

People obsess over price, but XRP’s value is in its utility. A higher price strengthens liquidity, efficiency, and adoption. Let the tech and leadership do the work; short-term noise doesn’t matter.
— Black Swan Capitalist (@VersanAljarrah) December 21, 2025

While price fluctuations are relevant, they should not be viewed purely as speculation; rather, these movements can foster broader adoption by enhancing liquidity and network functionality.

It’s important to keep in mind that historical patterns do not guarantee future outcomes. Although the accumulation theory relies on historical parallels and technical analysis, the market remains alert to news and fluctuations.

Some experts warn that selling now could result in missing potential gains if a rally does occur, while others stress the need for patience and careful investment strategies. For investors, the upcoming weeks could reveal whether the current downturn represents the end of a correction or the beginning of another ascent.

Featured image from LumerB/Getty Images, chart from TradingView