A prominent crypto analyst, scott melker, identifies xrp's current position at a critical weekly support band as one of the best risk/reward setups in crypto, potentially leading to significant price movement if the support holds.
The source explicitly states a strict editorial policy focused on accuracy, relevance, and impartiality, with content created and meticulously reviewed by industry experts. the analysis is attributed to a well-known and respected crypto analyst, scott melker.
Xrp is trading at a crucial support zone ($1.55-$1.60). if this support holds, the setup offers a 'tight downside, open upside' scenario, with potential targets at $2.00, $2.50-$2.60, and even $3.00+. the analyst suggests a small stop-loss below $1.50, indicating a bias for an upward move.
The analysis focuses on a tactical trading setup with defined entry, stop-loss, and profit targets, which typically implies a shorter-term outlook for traders looking to capitalize on the immediate risk/reward proposition.
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. XRP sits at a crossroads. Trading around the $1.6 area after a steep run higher and a later pullback, the token now rests on a weekly support band that traders are watching closely. According to crypto analyst Scott Melker, this is one of the cleaner risk/reward setups in crypto right now — a small stop can limit losses while a bounce could offer meaningful gains. Related Reading Crypto Funds Bleed $1.80 Billion As Metals Rally Heats Up 2 days ago Support Zone Holds The Key Based on reports, the zone around $1.55 to $1.60 is important. It lines up with the midpoint of the breakout that began in November 2024 and has acted as resistance before flipping to support. When price briefly dipped toward $1.50 and then closed January above the $1.60 mark, some traders read that as a liquidity sweep that cleared short orders. That kind of action can presage either a bounce or a deeper move, depending on whether fresh buying shows up. What History Shows XRP moved sideways in 2023 and much of 2024 before breaking out from roughly $0.50 to $0.60 in November 2024. A fast advance followed, carrying price toward the $2.00 area and then higher into the $3.66 peak in July 2025. $XRP Crazy chart. Trading exactly at the last meaningful support on the chart before a huge air pocket. For traders, this is about the best risk/reward you get on an asset. Easy to cut loose with a small loss if support fails. pic.twitter.com/wySapwsnT0 — The Wolf Of All Streets (@scottmelker) January 31, 2026 Those gains set a higher structure, but they also left large pockets of profit taking above current levels. Reports say that repeated failed attempts above $3.50 marked weakening demand, which helped trigger the current drop back to the $1.6 region. Tight Downside, Open Upside According to Scott Melker, a.k.a. “Wolf of All Streets”, traders can manage risk with a stop between $1.45 and $1.50. That makes the downside measured. On the flip side, a recovery would likely test $2.00 first, then run into supply around $2.50–$2.60, before facing heavier resistance near $3.00 and the old highs. XRPUSD currently trading at $1.62. Chart: TradingView That path is straightforward on paper, but market context changes outcomes. Volume confirmation is absent from many of the bullish takes; a support hold without visible buying on the tape is fragile. Broader liquidity in US markets and risk appetite for crypto will also play a major role in whether the bounce can sustain itself. Related Reading Crypto Hacks Explode: $370 Million Stolen In January Alone: Researchers 19 hours ago XRP’s Sweet Spot: Small Risk, Big Upside For Melker, setups like XRP’s current level are rare in crypto right now — a defined support, a tight stop, and clear upside targets create a scenario where the potential reward outweighs the risk. He emphasizes that traders don’t need to predict every twist in the market; instead, focusing on trades with controlled losses and meaningful gains can be the difference between surviving and thriving in volatile conditions. In XRP’s case, the near-term risk is small relative to the possible rebound, making it a setup many are watching closely. Featured image from Unsplash, chart from TradingView