XRP Tops All Assets On Risk/Reward, Analyst Says
XRP sits at a crossroads. Trading across the $1.6 space after a steep run increased and a later pullback, the token now rests on a weekly assist band that merchants are watching intently.
According to crypto analyst Scott Melker, this is likely one of the cleaner risk/reward setups in crypto proper now — a small cease can restrict losses whereas a bounce may supply significant features.
Support Zone Holds The Key
Based on stories, the zone round $1.55 to $1.60 is essential. It traces up with the midpoint of the breakout that started in November 2024 and has acted as resistance earlier than flipping to assist.
When worth briefly dipped towards $1.50 after which closed January above the $1.60 mark, some merchants learn that as a liquidity sweep that cleared quick orders. That sort of motion can presage both a bounce or a deeper transfer, relying on whether or not recent shopping for reveals up.
What History Shows
XRP moved sideways in 2023 and far of 2024 earlier than breaking out from roughly $0.50 to $0.60 in November 2024. A quick advance adopted, carrying worth towards the $2.00 space after which increased into the $3.66 peak in July 2025.
Crazy chart.
Trading precisely on the final significant assist on the chart earlier than an enormous air pocket.
For merchants, that is about the perfect threat/reward you get on an asset. Easy to chop unfastened with a small loss if assist fails. pic.twitter.com/wySapwsnT0
— The Wolf Of All Streets (@scottmelker) January 31, 2026
Those features set a better construction, however additionally they left giant pockets of revenue taking above present ranges. Reports say that repeated failed makes an attempt above $3.50 marked weakening demand, which helped set off the present drop again to the $1.6 area.
Tight Downside, Open Upside
According to Scott Melker, a.ok.a. “Wolf of All Streets”, merchants can handle threat with a cease between $1.45 and $1.50. That makes the draw back measured.
On the flip aspect, a restoration would seemingly take a look at $2.00 first, then run into provide round $2.50–$2.60, earlier than going through heavier resistance close to $3.00 and the outdated highs.
That path is simple on paper, however market context adjustments outcomes. Volume affirmation is absent from most of the bullish takes; a assist maintain with out seen shopping for on the tape is fragile.
Broader liquidity in US markets and threat urge for food for crypto can even play a significant position in whether or not the bounce can maintain itself.
XRP’s Sweet Spot: Small Risk, Big Upside
For Melker, setups like XRP’s present degree are uncommon in crypto proper now — an outlined assist, a decent cease, and clear upside targets create a state of affairs the place the potential reward outweighs the danger.
He emphasizes that merchants don’t must predict each twist out there; as a substitute, specializing in trades with managed losses and significant features will be the distinction between surviving and thriving in risky situations.
In XRP’s case, the near-term threat is small relative to the attainable rebound, making it a setup many are watching intently.
Featured picture from Unsplash, chart from TradingView
