XRP Navigates Critical Juncture: New Price Scenarios Emerge Within Persistent Descending Channel

XRP's price action hits a decisive inflection point, trapped within a bearish technical pattern that's testing investor conviction.

The Channel's Grip

A clear descending channel on the daily chart continues to dictate the asset's trajectory. Each rally toward the upper boundary has been met with selling pressure, reinforcing the pattern's resistance. The lower trendline now acts as a critical support zone—a breach could signal a deeper correction.

Bullish Divergences Lurk

Beneath the surface, not all indicators align with the gloomy structure. Trading volume patterns and momentum oscillators hint at underlying strength that contradicts the price's sluggish crawl. This hidden bullish divergence often precedes a significant breakout, suggesting the current consolidation might be accumulating energy rather than distributing weakness.

The Catalyst Conundrum

For XRP to escape, it needs a spark. Market participants are watching for a decisive daily close above the channel's resistance with substantial volume—a classic technical breakout signal. Until then, the scenario remains one of cautious range-bound trading, where every dip gets bought and every rally gets sold. It's the financial equivalent of watching paint dry, but with more at stake than just your hallway's aesthetic.

The next move hinges on whether bulls can muster the force to shatter the downtrend's ceiling or if bears will finally push through the floor. One thing's certain: this descending channel won't hold forever.

TLDR

• XRP entered 2026 trading inside a descending channel after closing 2025 with a yearly loss.
• The token faced rejection near $2.7 in late October 2025 which triggered a sustained price drop.
• XRP printed lower highs in Q4 2025 confirming a descending channel pattern on the daily chart.
• The price recovered above $2 in early 2026 gaining over 10 percent in the first three days.
• The bullish scenario expects XRP to break above $2.1 and retest the $2.75 resistance area.

XRP entered 2026 inside a multi-month descending channel after closing 2025 with its first red yearly candlestick since 2022, the asset dropped 11.51% over the year, falling from its $3.1 peak in October to close at $1.84, and now analysts have outlined both bullish and bearish case scenarios from the current structure.

XRP Sees Rejection at $2.7 Region and Confirms Downtrend

XRP faced strong rejection at the $2.7 to $2.75 resistance level in late October 2025. This occurred after an attempted recovery from the sharp October 10 crash.

The rejection triggered sustained losses that pushed XRP into a confirmed descending channel. The asset printed lower highs and lower lows throughout Q4 2025.

$XRP: Price rejected hard at the $2.70–$2.75 key resistance — the same level that flipped from support after the ATH placement. Since then, we've printed consistent lower highs, confirming the macro downtrend.

However, that said
• Price is respecting a descending channel
•… https://t.co/GYN1pxDaHv pic.twitter.com/je5k75KMUx

—ChartNerd(@ChartNerdTA) January 2, 2026

This price pattern confirmed the start of a downtrend that capped any recovery efforts. “The $2.7 zone flipped into resistance,” Chart Nerd explained.

That flip played a key role in guiding the price downward through the final quarter. It also marked the beginning of sustained technical weakness.

The descending channel has since limited upward price action. XRP closed 2025 at $1.84, well below its October peak.

XRP Shows Early 2026 Recovery but Faces Resistance at $2.1

XRP rebounded above $2 in early 2026 for the first time in three weeks. The asset gained 10.77% within the first three days of January.

This short-term recovery suggests rising momentum and higher lows. According to Chart Nerd, this shift could compress momentum further and trigger volatility.

He highlighted that XRP bounced after retesting the lower channel support between $1.6 and $1.77. That bounce reinforced the structural validity of the descending channel.

XRP is now changing hands at $2.03. The resistance at the top of the channel currently stands around $2.1.

This level must be breached for any further bullish scenario to unfold. Until then, XRP remains inside the channel structure.

Bullish Case Targets $2.75 While Bearish Case Points to $1.6

Chart Nerd outlined two scenarios from the current price point. In the bullish case, XRP breaks above the $2.1 resistance.

Such a move could lead the xrp price toward the $2.7 to $2.75 zone. That zone previously served as support before flipping to resistance.

“Reclaiming that area WOULD shift XRP’s macro structure,” the analyst said. The price must hold above $2.75 for confirmation.

In the bearish case, XRP could fail to breach the $2.1 resistance. This would keep it within the channel’s constraints.

A rejection could send XRP back toward the $1.6 level. That zone last acted as support in April 2025.

Chart Nerd emphasized that “XRP is building momentum regardless of direction.” However, the asset remains inside the descending channel.

As of now, XRP trades slightly below the $2.1 resistance trendline. Market participants continue tracking whether it can break out or face a new correction.