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XRP Technical Analysis Points to Potential 56% Correction Amid Failed Rally Attempt

XRP Technical Analysis Points to Potential 56% Correction Amid Failed Rally Attempt

Author:
XRP News
Published:
2026-01-01 06:11:18
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As of early 2026, XRP faces renewed downward pressure following another unsuccessful attempt to breach the critical $2 resistance level. During recent intraday trading, the digital asset briefly touched $1.91 before experiencing sharp rejection, reinforcing growing concerns among technical analysts about its near-term trajectory. This failed rally has prompted market observers to issue warnings about a potential 56% correction that could potentially drag XRP prices down to the $0.80 support zone. The current technical landscape reveals significant challenges for XRP's upward momentum. The repeated failure to sustain momentum above key resistance levels suggests weakening buyer conviction and increasing selling pressure at higher price points. This pattern emerges amidst broader cryptocurrency market uncertainty, where traditional technical indicators are flashing caution signals for several major digital assets. Market analysts point to several concerning factors contributing to this bearish outlook. The rejection at $1.91 represents not just a psychological barrier but also aligns with historical resistance levels that have previously capped XRP's advances. The projected 56% decline to $0.80 would represent a return to support levels not seen since earlier market cycles, potentially undoing months of gradual appreciation. This technical warning comes at a crucial juncture for XRP, which has been attempting to establish a new trading range above previous resistance levels. The failed rally attempt suggests that despite intermittent bullish sentiment, underlying market structure may not yet support sustained upward movement. Analysts are closely monitoring trading volume patterns and institutional positioning for clues about whether this correction scenario will materialize. The broader context of regulatory developments, institutional adoption patterns, and macroeconomic factors will likely influence whether XRP can avoid this projected decline. As the cryptocurrency market continues to mature in 2026, such technical warnings serve as important reminders of the volatility inherent in digital asset trading and the importance of risk management strategies for both retail and institutional investors participating in the XRP market.

Market Analyst Warns of Potential 56% Decline in XRP Amid Failed Rally

XRP faces renewed downward pressure as another attempt to breach the $2 resistance level falters. The digital asset briefly touched $1.91 during intraday trading before experiencing sharp rejection, reinforcing concerns about its near-term trajectory.

Technical analysts now warn of a potential 56% correction that could drag prices down to $0.80. This bearish outlook emerges amidst broader market uncertainty, with traders closely watching whether XRP can maintain key support levels in the coming sessions.

Standard Chartered Issues Bullish XRP Forecast for 2026

Standard Chartered has unveiled one of the most optimistic institutional price projections for XRP to date. The global banking giant anticipates a significant appreciation in XRP's value, citing regulatory clarity and potential spot ETF adoption as key catalysts.

The forecast comes amid growing institutional interest in digital assets, with XRP positioned as a beneficiary of evolving cryptocurrency frameworks. Market observers note such projections from traditional financial institutions lend credibility to crypto valuations.

XRP Price May Surge to $8 by 2026, Driven by Legal Clarity and ETF Growth

Standard Chartered projects a 332% rally for XRP, targeting $8 by 2026 as regulatory hurdles fade and institutional demand accelerates. The bank's forecast follows Ripple's partial legal victory against the SEC, which ruled that XRP's exchange sales didn't constitute securities transactions.

Spot XRP ETFs are emerging as a key demand driver, with products already amassing $1.24 billion in assets under management. Ripple's expanding cross-border payment network further bolsters the token's fundamental case, creating real-world utility beyond speculative trading.

Top XRP YouTuber Shares 2026 Wishlist for the Cryptocurrency

Analyst and prominent XRP YouTuber Zach Rector has outlined his vision for the cryptocurrency by 2026, emphasizing practical enhancements that could drive utility and value. His wishlist highlights potential developments aimed at strengthening XRP's position in the digital asset ecosystem.

Rector's projections come amid growing speculation about XRP's long-term trajectory, particularly as regulatory clarity improves and institutional adoption gains momentum. The focus on real-world utility underscores a broader industry shift toward blockchain solutions with tangible use cases.

XRP Ledger's Tokenized RWA Value Surges 2200% to $567M in 2025

The XRP Ledger has become an unlikely powerhouse in tokenized real-world assets, posting a 23-fold increase to $567.89 million this year. RLUSD—Ripple's stablecoin—now dominates 51% of this market with $292.93 million locked on-chain.

February's $55.35 million injection from Montis Group Limited pushed XRPL past the $100 million threshold, while OpenEden's TBILL Vault continues attracting institutional capital. The ledger has added $72 million in RWA value just since April, outperforming ethereum and Polygon during the same period.

BlackRock's Larry Fink and SEC Commissioner Paul Atkins have repeatedly cited such growth as evidence of blockchain's maturation. 'This isn't speculative crypto,' notes Montis CEO Daniel Kim. 'We're seeing pension funds and corporate treasuries allocate here.'

XRP ETFs See $483M Inflows in December, Total Surpasses $1.14B

XRP exchange-traded funds continue to attract significant capital, with December inflows reaching $483 million. The milestone pushes total investments beyond $1.14 billion, demonstrating sustained institutional interest.

Daily inflows remain robust, with $8 million recorded on Monday alone. The consistent demand suggests growing confidence in XRP's regulatory clarity and long-term viability as a payment-focused digital asset.

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