Alibaba Qwen AI predicts that the price of XRP will soar to $4.20 before January 2026, with an analysis of three major driving forces.

As the market begins to recover, funds are flowing back from gold to risk assets, and XRP has once again become the focus of retail investors. Qwen AI, which performed outstandingly in the Alpha Arena trading competition, has given a very optimistic forecast for XRP's trend over the next three months, setting a target range of $3.80 to $4.20. This prediction is based on XRP's strong technical support, the upcoming ETF decision window, and macro favourable information such as improved regulatory clarity under Trump and the seasonal market surge in the fourth quarter. Qwen AI believes that if it can cleanly break through the key resistance level of $2.85, XRP is expected to achieve a rise of 45% to 60% before January 2026.

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As the global market finally begins to show signs of recovery, the trend of capital rotation is shifting from traditional safe-haven assets like gold back to risk assets represented by cryptocurrencies. In this context, XRP, with its accumulated advantages in the compliance field, remains one of the most favored choices among many retail investors. It is worth noting that the opinions of the Qwen AI model, which performed excellently in the Alpha Arena trading competition, are gaining increasing attention from traders. In this article, Qwen AI predicts the price trend of XRP over the next three months, and its outlook is quite optimistic.

XRP price prediction: Qwen AI target $4.20, potential rise 60%

Qwen AI predicts that a rise of 45% to 60% for XRP before January 2026 is reasonable, with a target range of $3.80 to $4.20, referring to it as a “realistic and optimistic” target.

(Source: TradingView)

Qwen AI provides detailed technical and fundamental explanations for its predictions. From a technical perspective, during the recent market pullback, XRP perfectly rebounded at the strong support level of 2.20 USD, demonstrating strong bullish support. Additionally, the relative strength index (RSI) is currently stable around 63, indicating momentum leaning towards the bulls. Qwen AI believes that if XRP can cleanly break through the key resistance level of 2.85 USD, it will confirm the next significant bullish trend. More importantly, the decision window for the XRP spot ETF will open in January. If the XRP ETF is approved, it could become the precise catalyst needed to maintain its bullish trend.

support XRP three key drivers of the bull market

Qwen AI emphasizes that a single technical analysis is insufficient to support such an optimistic prediction, especially considering the risk of ETF rejection and the need to observe capital inflows. Therefore, it added additional fundamental and macro factors to support its bullish prediction for XRP:

1. Improved Regulatory Clarity: Under Trump's leadership, the long-awaited regulatory clarity in the market is expected to improve. Investors have been looking forward to a more defined regulatory environment for years, which will greatly reduce the uncertainty risk for XRP and the entire cryptocurrency market.
2. Seasonal Surge in Q4: Historically, the fourth quarter (Q4) has been one of the most explosive periods in the cryptocurrency market. Seasonal factors often lead to large-scale capital inflows and price pumps.
3. Liquidity expansion brought about by the Federal Reserve's interest rate cuts: If the Federal Reserve continues to push for interest rate cuts, more liquidity will be directed towards altcoins and risk assets, with XRP as a compliance pioneer particularly benefiting.

Conclusion

Qwen AI's optimistic prediction for XRP's price is based not only on solid technical breakthrough signals but also combines multiple driving forces such as macro liquidity, improvement in the regulatory environment, and seasonal surges. With the ETF decision window approaching and expectations for interest rate cuts from the Federal Reserve heating up, XRP is indeed at a potential point of explosion. However, investors should always keep in mind the high volatility of the crypto market and utilize safe tools to ensure that while pursuing high returns, the safety of their assets is prioritized.

Disclaimer: This article is for news information only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make cautious decisions.