The cryptocurrency markets were hit by significant sell-offs at the end of 2025, with XRP being one of the affected assets. As downward trends marked the end of the year, slight recovery signals have emerged at the onset of 2026. Market analysts are closely examining XRP’s current technical framework, evaluating both the possibilities of further decline and potential upward movements.
XRP’s Declining Channel and Technical Outlook
XRP witnessed a sharp pullback after reaching $3.1 at the start of October 2025. The loss of psychological support at $3 and then $2 led the price to close the year at $1.84. This drop marked the first annual decline since 2022, attributable to strong sell-offs from the $2.7–$2.75 range, pushing the price into a prolonged descending channel.
According to market analyst Chart Nerd, the area that once acted as support has transformed into a formidable resistance zone. Aligning with the descending channel pattern, XRP confirmed the bearish trend by forming lower peaks in the last quarter of 2025. However, early 2026 saw some reactionary buying, indicating support within the $1.6–$1.77 lower channel band. Daily charts imply a shift in the short-term trend, as higher lows begin to appear, potentially setting the stage for increased volatility.
What Do the Bullish and Bearish Scenarios Suggest?
Despite XRP gaining over 10% in the initial days of 2026, it remains within the descending channel. Chart Nerd emphasizes the necessity of surpassing the upper trend line, around $2.1, for the bullish scenario. Breaking this resistance could lead XRP back into the $2.7–$2.75 range, a cross marking a significant indication of a macro trend reversal.
Conversely, failing to breach the $2.1 resistance could rekindle selling pressure for XRP, with possible retracement towards the $1.6 support seen last in April 2025. Regardless of the scenario, Chart Nerd argues that XRP is amassing significant momentum that could trigger sudden price movements.
Complementing this technical framework, recent reports from Ripple have drawn attention. News about Ripple establishing new payment partnerships in the Asia-Pacific region has sparked optimism about XRP’s utility, suggesting these developments could play a pivotal role alongside technical indicators.
In conclusion, XRP’s current landscape is a mix of uncertainty and significant opportunities. While technical analysis highlights critical support and resistance levels, positive news from the Ripple ecosystem enhances investor sentiment. Nonetheless, the descending channel remains a crucial factor; therefore, investors must cautiously observe both technical levels and fundamental developments.
