XRP sits near $1.60 after a sharp rally and a subsequent pullback, currently resting on a weekly support band that many traders are monitoring. Crypto analyst Scott Melker describes the situation as one of the cleaner risk/reward setups in the market: a tight stop can limit downside while a convincing bounce could deliver meaningful gains.
The key zone to watch is roughly $1.55–$1.60. That area corresponds with the midpoint of the breakout that began in November 2024 and previously acted as resistance before flipping to support. Price briefly dipped toward $1.50 before closing January above $1.60, an action some traders interpret as a liquidity sweep that cleared short orders. That kind of move can foreshadow either a bounce or a deeper drop depending on whether new buying appears.
Looking back, XRP traded sideways through 2023 and much of 2024, then broke out from about $0.50–$0.60 in November 2024. A rapid advance carried price into the $2.00 area and ultimately to a peak near $3.66 in July 2025. Those gains created a higher structural base but also left sizable profit-taking zones above current levels. Repeated failures above roughly $3.50 earlier this year signaled weakening demand and helped set the stage for the recent retreat toward $1.6.
Melker suggests traders can keep downside risk tight with stops around $1.45–$1.50. On the upside, a recovery would likely encounter $2.00 first, then supply in the $2.50–$2.60 range, and heavier resistance near $3.00 and the prior highs.
That roadmap looks clean on a chart, but it depends on market context. Many bullish takes lack clear volume confirmation; a support hold without visible buying on the tape is fragile. Broader liquidity conditions in U.S. markets and overall crypto risk appetite will also influence whether any bounce can be sustained.
For Melker, setups like this are relatively rare right now: defined support, a tight stop, and clear upside targets create a situation where potential reward can meaningfully outweigh measured risk. In XRP’s case, the near-term downside appears limited compared with the possible rebound, which is why the token is drawing increased attention from traders.
