A Bearish Start to The Year For XRP! What do The Chart Say About 2026?

XRP started December losing almost 6% on the first day, but rebounded the next day. However, the surge failed to restore investors’ confidence, leading to a steeper decline over the next few days.

The downtrend softened this week due to reduced volatility. Nonetheless, the 1-day chart shows the asset saw slight declines that culminated in a notable decline. For example, the coin retraced after a slight uptick and continued downward until Thursday, losing almost 5%.

Although the asset rebounded on Friday, it has yet to recover its lost levels. One such is the $1.90. The mark held significant importance as it served as a key support on the 1-week chart, and holding would confirm further increases.

Commenting on the importance of this critical level, market analyst Ailicharts said XRP could break above $2.50 if the bulls defend the highlighted support. However, current prices show that they failed.

The asset lost the barrier on Monday and has since struggled to reclaim it. With the support lost, prices may plummet even lower in the coming days.

Alichart also agrees with this assertion, as a follow-up post would explain: “Support is gone for $XRP. $1.10 comes into focus.” The analyst expressed concern about a possible drop to $1.10 in the coming week and presented a 3-day chart to support his claim.

On the three-day timeframe, the altcoin bounced off the $1.90 barrier in April, indicating notable demand concentration. However, a rebound failed to happen, and the asset is trading below the mark. According to the present chart, there are other levels with demand concentration before $1.10.

1-Day Chart Says Downtrend is Inevitable

At the start of December, Ripple’s CEO expressed his satisfaction with how the exchange-traded funds tied to XRP were performing. The investment fund soon became the fastest-growing ETF launched in 2025, amassing over $1 billion in net assets in record time.

The investment fund is still experiencing significant inflows and has not posted a day when outflows were greater. However, price action was unaffected by ETF performance. It remains to be seen when the price correlation will start.

Exchange-traded funds are unable to have a notable impact on prices, leaving fundamentals and the spot market. For fundamentals, one of the most anticipated this month was the Fed’s rate decision. One analysis noted that “Investors are banking on the FOMC decision to seal an uptrend to this level. It may be the only fundamental that could trigger the expected hike.”

The surge did not come as many expected. Fundamentals failed, and there is no big news that could halt the current downtrend in the next two weeks. With ETFs and fundamentals, the spot and derivative markets are the next place to turn.

The XRP 1-day chart shows the asset has been in decline for months. The image above indicates that the downward movement started in August, and there are no signs that it will end soon.

Nonetheless, the chart suggests that the asset may see a bearish start to January. A closer look shows several other smaller bearish patterns. In the last two such declines, prices were rangebound before another steep decline.

The asset is currently consolidating after another bearish period. If the trend continues, the asset will retrace even lower next week.

XRP Breaks Out On The Weekly

The 1-week chart reiterates the importance of the $1.90 support and sheds more light on the implications of a loss. The charts show several rises and falls. However, focus will be on the uptrend that started in November 2024.

The uptrend lasted months but showed the first signs of the bulls’ exhaustion in December. The upward movement ultimately ended in January after the asset peaked at $3.40. XRP retraced, shedding more than half of its accumulated gains before rebounding in June.

The coin surged afterward, reaching a new all-time high in July, earning cheers from investors. It peaked at $3.66 and retraced afterward. It has since failed to recover, despite several attempts at buybacks.

Price actions this week are an extension of the bearish downward trend that began in July. However, connecting the tops in January and July reveals a double top pattern.

A typical bearish pattern, the price must retrace below the neckline to confirm the downtrend. The confirmation occurred this week, when the altcoin broke below support at $1.90 on Monday. The 1-week chart shows that the asset is currently below the neckline, sealing the downtrend that would follow.

The bollinger bands slightly align with the bearish prediction. XRP is currently trading close to the lower band at the time of writing. The lower line sits at $1.69, the next possible low for January.

Nonetheless, the sharp drop in Oct 10 created a fair-value gap that extends to $1.50. The altcoin will retrace to fill the gap, which means a drop to that price level is almost inevitable.

XRP 1-Month Weighs In

An analysis in October noted that the altcoin had two major events on the 1-month chart. The first showed that the asset was overbought on the 1-month scale. The second: the moving average convergence divergence had a bearish crossover. These two events cast a dark, foreboding shadow over 2026 as they play out already.

The article also pointed to two occasions when the highlighted events occurred and the devastating effects on prices. It stated that “Using the relative strength index, the asset typically loses a whopping 70% after becoming overbought.”

Since July, XRP has lost over 45%. An additional 25% will see the asset drop below $1.35 in the coming weeks. The downtrend will start in January, marking the bearish start to the year. 

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