XRP Price Pushes for Gains, Resistance Keeps the Market Guessing

XRP has shown mixed movements in the first week of 2026, oscillating between bullish momentum and bearish pressure. The token briefly dipped below $2.32 and moved toward $2.25 before buyers pushed it back toward $2.20. Analysts suggest that as long as the price remains above this level, the overall structure remains intact.

The RSI has settled at 45, which has historically served as a healthy reset point during ongoing uptrends. This suggests that the current correction may be a normal part of the broader trend rather than a reversal. XRP has also seen ETF inflows and supportive fundamentals, giving analysts reason to believe it could push toward $5 by the end of 2026.

However, recent volatility has introduced uncertainty. WisdomTree's decision to withdraw its S-1 registration for a spot XRP ETF caused a 6% drop in the token's price. This move surprised many market observers and raised questions about the future of XRP ETF products under SEC review.

Why Did This Happen?

WisdomTree's withdrawal led to an immediate drop in XRP's price and contributed to a broader market correction. The token fell below $2.30 and tested key support levels around $2.05–$2.10. Analysts observed that if these levels fail, XRP could test $1.90, which it last traded at on January 2.

At the same time, XRP ETFs recorded their first-ever outflows on January 7, totaling $40.8 million. This ended a 54-day inflow streak and signaled a shift in institutional sentiment. The largest outflow came from the 21Shares TOXR product, which lost $47.25 million.

How Markets Responded

The drop in ETF inflows coincided with a broader price correction, with XRP falling from a peak of $2.42 to as low as $2.08. This 14% drop over two days reflected weakened institutional buying and a loss of confidence from major fund managers.

Despite this, some analysts argue that the pullback is part of a healthy consolidation phase. XRP has been forming higher lows since early January, and buyers have entered earlier with each dip. This suggests that the underlying bullish structure remains in place as long as the price stays above $2.20.

The token has also shown resilience at key Fibonacci levels. Price action suggests that XRP is basing at $1.74, a level defined by the 0.618 Fibonacci retracement and the value area low. This confluence has historically acted as a magnet for buyers, and recent price behavior indicates that accumulation is taking place.

What Analysts Are Watching

Traders and analysts are closely monitoring several technical levels to determine the next direction of the market. XRP must reclaim $2.02 to shift sentiment in favor of buyers. This level aligns with a declining long-term moving average and is a critical barrier for medium-term recovery.

Another key focus is the 21-month EMA, which has historically acted as a trend validator for XRP. If the token breaks above this level and holds, it could signal the start of a new bullish cycle. Analysts note that this indicator has consistently separated strong rallies from deep corrections in previous cycles.

At the same time, open interest and spot flows show a more balanced market. Open interest has stabilized at around $3.7 billion, indicating that traders have reduced excessive leverage. Spot flows have also turned modestly positive, suggesting easing sell pressure and cautious buying.

Ripple's escrow management is also a key factor. The company recently completed its January escrow release and returned 700 million XRP to escrow. This controlled release helps limit sudden supply shocks and supports long-term market stability.

Looking ahead, analysts are watching for confirmation of a trend reversal. A sustained push above $2.02 could open the path toward $2.18 and beyond. However, if XRP fails to hold key support levels, it could retest the $1.77–$1.90 range before finding a new base.

In summary, XRP faces a pivotal inflection point as it balances between bearish structure and early signs of accumulation. Short-term volatility remains high, but the broader trend suggests that XRP could still test $3 or higher if buyers reclaim key technical levels.