XRP Price Retraces After a Strong Rally—Yet the $3 Price Target Remains in Focus

The broader crypto market has entered a pause as the strong upside momentum that dominated the start of 2026 begins to cool. Against this backdrop, XRP emerged as a standout performer, breaking a multi-month descending trend and rallying nearly 28%, placing it among the top gainers in the top 10 cryptocurrencies. However, bulls failed to secure a decisive close above the $2.30 reversal zone, prompting profit-taking that pushed the XRP price back toward $2.25. 

Despite the pullback, XRP’s structure remains constructive, keeping a potential 30% move toward the $3 level in play. Here’s Why!

Institutions Heavily Optimistic on XRP Price

Since the launch of exchange-traded funds, the structure of the crypto market has shifted decisively, with institutional participation becoming a key driver of sentiment. Consistent inflows have reinforced confidence among market participants, who now react more constructively when institutional demand remains steady. Notably, XRP-linked ETF products have yet to record a net outflow since launch, signaling sustained institutional interest. This steady allocation trend suggests growing confidence in XRP’s broader price trajectory, even during short-term market pullbacks.

This chart highlights a steady pattern of positive net inflows into XRP spot ETFs, even during periods when the price consolidated or pulled back. For traders, this divergence is critical: institutions continued allocating despite short-term volatility, signalling conviction rather than momentum chasing. The absence of sustained outflows suggests that larger players are positioning for continuation, not distribution. This consistent institutional demand has helped anchor downside risk and, in turn, kept trader sentiment constructive.

 As inflows expanded alongside the recent price acceleration, confidence strengthened that the broader XRP uptrend remains structurally supported.

Does This Point Towards A Bullish Continuation?

The XRP price has broken the bearish trend that it began in early October after failing to hold within the consolidated range between $3 and $2.75. The token continued to form consecutive lower highs and lows, highlighting the growing dominance of the bears. However, the trend appears to have flipped since the start of the year, as the price has broken above the falling wedge but failed to sustain above the crucial resistance at $2.27 which is acting as an interim support. 

The short-term price action of XRP suggests the upswing has just halted for a while, but not faded. The price has been trading along the upper band of the Bollinger since the breakout, signaling a strong bullish momentum. Although the price faced a rejection from the upper band with volume, it suggests a short-term exhaustion, not necessarily a trend reversal. As long as the middle band or the 20-day MA acts as the support, the bullish bias remains intact. 

Besides, the stochastic RSI has reached the oversold zone and is preparing for a bullish crossover. Alongside, the volume has risen in the past few days after remaining flat for a while, hinting towards a strong upswing action after hitting the support at $2.24, if bears hold an upper hand. Even if the bulls fail to defend this range, the 20-day MA or the middle band of Bollinger may act as a base to initiate the recovery. 

Can XRP Price Reach $3 This Month?

The broader crypto market is entering a consolidation phase after a strong rally, but XRP’s relative strength suggests the uptrend is not easily invalidated. After gaining over 25% in the past seven days, XRP price continues to attract both institutional and spot demand, keeping the bullish structure intact despite the recent pause. From a technical standpoint, the $2.65–$2.70 zone remains the key turning area. 

This range has repeatedly acted as both resistance and support, making it a decisive trend-confirmation level. A sustained breakout and acceptance above this zone would significantly increase the probability of a continuation move toward—and potentially beyond—the $3 target.