The price trend of XRP has shifted to a downward phase after several days of rise. At the beginning of the year However, technical analysis suggests that this could be part of a bullish structure.
After rising from below $2 on January 1st On January 6th, it will be $2.41.the market is starting to digest those gains. Now, the outlook is on the level of short-term financial prices. Can be maintained even if momentum is resetthe following directional moves are expected to define XRP’s near-term trajectory.
XRP rally sets backdrop for current pullback
XRP Current price trends The past 24 hours have depicted a downward retracement. What is noteworthy is this retracement. following a strong upward trend It started at the beginning of the week. To put this in context, XRP started at around $1.85 in January 2026, but rose to a peak of $2 on January 6th, representing a 30% gain within that period.
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On January 4th, XRP was trading between approximately $2.01 and $2.12 before demand accelerated. By January 5th, intraday price action had widened to a range of $2.09 to $2.36, reflecting clear momentum. The bull run extended into January 6th and 7th, with XRP briefly climbing above $2.41 before sellers began to intervene.
According to Technical analysis shared on X According to TARA, this pullback pushed XRP price to the 0.236 Fibonacci retracement, around $2.27. This level is quickly becoming a key area of concern as it represents the first meaningful support following the recent rally. The chart accompanying the analysis shows the price reacting cleanly around this zone, with XRP dropping sharply on the 4-hour candlestick time frame.
What to expect next from XRP
Momentum indicators on the chart suggest that a correction is still underway, but do not suggest structural weakness. The 14-SMA is rising towards the price and can act as dynamic support, which often helps limit the downside during healthy retracements.
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According to the analyst, XRP will need to revisit the $2.30-$2.33 region during this correction wave. That area previously acted as a resistance, but now could determine whether the pullback remains shallow or widens further.
If XRP fails to regain that zone, the analysis points to a deeper but still technical retrace towards the 0.382 Fibonacci level around $2.18. Even in that scenario, the move would be consistent with a subsidence in a strong trend rather than a break in a bullish structure.
Despite the ongoing correction, the broader outlook outlined in the analysis is optimistic. Once a retrace-confirmed low is found, XRP could return to its previous high. Based on the current structure, the upside target is expected to be in the $2.49 to $2.66 range, with a correction expected depending on where the correction ultimately bottoms out.
Featured image from Freepik, chart from Tradingview.com
