XRP Faces Resistance at $1.68 After 9% Rebound, $2 Target in Focus

XRP has rallied 9.4% over the past two days to trade at $1.46 as of February 26, 2026, following a broader market rebound that pushed Bitcoin back above $68,000.

Technical analysis indicates that XRP must first clear resistance between $1.49 and $1.52, followed by the major sell wall at $1.68, before a sustained move toward the $2 psychological level becomes viable, while holding above $1.40 remains critical to maintaining current upside momentum.

Price Action and Market Context

XRP has initiated a recovery effort, rising 6.5% over the past 24 hours and gaining 9.4% since February 25 to reach $1.46. The rebound builds on broader market relief, with Bitcoin pushing back above $68,000 following allegations that trading firm Jane Street may have been responsible for persistent daily selling pressure, though these claims remain unconfirmed.

The move follows a period of significant downside that saw XRP drop from above $2.20 in January to establish support near $1.30. The current rally has successfully defended the critical $1.3475 level identified by analysts as a daily buy wall, allowing buyers to absorb selling pressure and trap short sellers.

Critical Resistance Levels Ahead

Market analyst Cypress Demanincor has outlined the specific price levels XRP must overcome before a return to $2 becomes realistic. With the price now trading at $1.46 and holding strength above $1.40, the next targets sit between $1.49 and $1.52.

A clean break above the $1.49 to $1.52 resistance zone would open the door to the sell wall at $1.68. If XRP successfully clears the $1.68 level, traders can begin targeting a possible return toward $2 and beyond.

Analyst CryptoInsightUK has independently highlighted $1.50 as a critical threshold, noting that a daily close above this level would confirm a “very strong move.” The analyst suggests XRP could be forming a pattern similar to previous bullish setups, describing the recent rebound as a healthy move that does not appear driven purely by open interest or manipulation.

Downside Risks and Support Levels

Despite the positive momentum, analysts caution that downside risks remain. If buyers lose the strong momentum established on February 25, XRP could revisit $1.40. A break below $1.40 would likely send the price back toward the $1.35 support zone.

The $1.3475 level previously identified as a critical buy wall now serves as stronger structural support. A failure to maintain current levels would delay recovery prospects and potentially extend the consolidation period.

Liquidity Dynamics and Short Squeeze Potential

Liquidity data reveals asymmetric positioning that could accelerate upside moves. According to market analyst Bird, daily liquidity data shows the market has already swept most of the downside, meaning limited liquidity remains below current price levels.

However, the area above is “packed with short positions.” If XRP continues to rise, those short positions could become fuel for a fast move higher. When traders close short positions, they must buy back at higher prices, creating additional buying pressure that can trigger a short squeeze.

Bird suggests that such dynamics could push XRP racing toward $4.20 or even higher in a compressed timeframe if the squeeze materializes, though this scenario depends on sustained momentum and the triggering of stop losses and margin calls on leveraged short positions.

Catalyst and Market Sentiment

The broader market rebound has been attributed in part to reports that Terraform Labs has sued Jane Street over its alleged role in the Terra collapse, with additional unconfirmed claims suggesting Jane Street may have been systematically dumping Bitcoin at 10 a.m. daily. While these allegations remain unverified, their circulation has contributed to improved sentiment and reduced perceived selling pressure.

For XRP specifically, the rally follows weeks of consolidation and capitulation signals. The token recently recorded its largest realized loss spike since 2022, historically a precursor to price bottom formation and subsequent recovery phases.

FAQ: Understanding XRP’s Path to $2

Q: What price levels must XRP overcome to reach $2?

A: XRP must first clear the $1.49-$1.52 resistance zone, followed by the major sell wall at $1.68. A decisive break above $1.68 would open the path toward $2 and potentially higher targets. Maintaining strength above $1.40 is critical to keep these upside targets in play.

Q: What happens if XRP fails to hold above $1.40?

A: A break below $1.40 would likely send XRP back toward the $1.35 support zone. A deeper decline could test the $1.30 level, which has served as structural support throughout February. Failure to hold these levels would delay recovery prospects and potentially extend consolidation.

Q: How could short positions affect XRP’s price movement?

A: Liquidity data shows significant short positions stacked above current price levels. If XRP continues to rise, short sellers closing positions would create additional buying pressure, potentially triggering a short squeeze that accelerates gains beyond $2 in a compressed timeframe.

Q: What role did the Jane Street allegations play in the rebound?

A: Reports that Terraform Labs sued Jane Street for its alleged role in the Terra collapse, combined with unconfirmed claims of systematic daily selling, have contributed to improved market sentiment. While the allegations remain unverified, their circulation has coincided with reduced perceived selling pressure and the disappearance of previously observed 10 a.m. selling patterns.