XRP is trading near $1.90 and remains under pressure due to high volatility and legal sensitivity.
A break below $1.80 could open the path toward $1.26 as the next major support level.
Extreme market stress could push XRP into the $0.50–$0.55 zone in a worst-case scenario.
XRP has gone through a critical, unstable phase in recent weeks. After reaching higher levels earlier in January 2026, the price pulled back and is now trading close to the $1.90 zone. Recent daily trading data shows XRP moving mostly between $1.87 and $1.92, with strong volume still present.
High volume means many traders are entering and exiting positions, which increases short-term volatility. This shows that confidence is not fully settled and the market is still deciding its next direction. Even though there have been small rebounds, the overall structure still looks fragile.
Regulation remains one of the biggest drivers for XRP. After the lengthy legal battle in the United States ended in 2025, a major cloud was removed from the project. That decision helped XRP recover strongly last year. However, the market continues to react to any new legal or policy news. Recently, some smaller lawsuits and legal motions created short-term fear and sudden price drops.
The dismissal of a long-running class action case was seen as a positive sign. Still, traders stay cautious, as any surprise regulatory headline can quickly push prices lower again. This constant legal sensitivity keeps XRP more volatile than many other large cryptocurrencies.
Another reason the asset can fall quickly is the level of leveraged trading associated with it. Many traders use borrowed money to bet on short-term price moves. When XRP price starts to fall, these positions can be automatically forced closed, which adds more selling pressure.
Exchange reserve movements and liquidity also play a role. This mix of leverage and unstable metrics makes downside moves stronger than usual.
Also Read: XRP Price Struggles Under $2.00 as Market Signals Weakness
The first key downside level to watch is $1.80. This price has acted as short-term support during recent trading. If XRP falls below $1.80 and stays there for a few days, many traders may sell their positions. This can trigger stop-loss orders and forced liquidations from leveraged trades.
A break below $1.80 would indicate that buyers are losing strength and that bearish pressure is increasing. Reports from January 2026 describe this level as the line between stability and further decline.
If $1.80 fails, the next major support sits near $1.26. This price zone matches an earlier flash-crash low and also shows strong historical buying activity. If bearish conditions occur, the asset would decrease to this level, representing an approximate one-third loss from its current value of $1.90. The market will experience this dip as overall crypto sentiment will decline due to large holders selling.
At this stage, many investors may rotate their funds into safer or less volatile assets until confidence returns. This level is seen as a medium-term structural support, not just a temporary bounce area.
The most extreme downside projection lies between $0.50 and $0.55. This scenario comes from technical analysis, which studies long-term market trends and historical crashes. The digital asset space would need to experience an extreme negative event, which includes global deleveraging, severe macroeconomic shock, and other debilitating occurrences.
While this outcome is considered less likely, past crypto cycles have shown that deep drawdowns are always possible. Analysts identify this zone as a panic-selling point that will reach its peak before the market enters a prolonged recovery.
Also Read: XRP Open Interest Slides 60% as Binance Deleveraging Resets Market
The market remains uncertain about XRP, as the current price near $1.90 has not established a clear trend. The asset’s direction will be determined by ETF flows, liquidation data, and legal updates.
The market will experience downward price pressure until greater stability emerges. Asset behavior will follow either support-level maintenance or the ecosystem’s fear escalation, which might result in active selling.
1. Why is XRP price under pressure right now?
XRP is facing pressure from legal news sensitivity, leveraged-trading liquidations, and volatile ETF and exchange flows.
2. What is the most crucial support level for XRP?
The most important short-term support level to watch is $1.80, as it defines whether XRP stays stable or moves lower.
3. Can XRP fall to $1.26 again?
Yes, if selling pressure increases and overall crypto market sentiment turns bearish, XRP could revisit the $1.26 support zone.
4. Is $0.50 a realistic downside target for XRP?
This is considered an extreme scenario and would likely require a major market crash or strong negative macro or regulatory events.
5. What factors can help XRP recover instead of falling?
Positive ETF flows, stable legal developments, and stronger buying demand from institutions and retail investors could support a price recovery.
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