XRP has entered a critical phase after retreating from its 2026 highs above $3, with technical indicators suggesting that the $2 level remains within reach despite recent market weakness. The token recently dropped to $1.1018 on the weekly chart, approaching the lower Bollinger Band at $1.0562.
Meanwhile, institutional inflows, regulatory developments, and growing blockchain activity continue to support market expectations as traders monitor whether XRP can maintain its position above the key $1.10 level.
XRP faced heavy selling pressure during the current week. The weekly chart showed the token falling to $1.1018, placing it close to the lower Bollinger Band at $1.0562. At the same time, the weekly Relative Strength Index declined to 33.78. That reading places XRP in oversold territory, leaving limited room for additional downside before a potential rebound.
Meanwhile, the broader trend remains stable on the monthly timeframe. Buyers continue defending the Bollinger Bands midline, represented by the 20-period simple moving average at $1.1039.
As long as that monthly support remains intact, the broader bullish structure remains unchanged. Furthermore, the monthly RSI near 41.87 indicates room for additional upward movement. What happens if XRP successfully holds above the $1.10 support level?
Besides the technical setup, institutional investment continues to attract attention. XRP exchange-traded funds have recorded capital inflows for nine consecutive weeks. Those inflows have lifted total assets under management to $1.49 billion. Retail traders have continued to realize losses during the recent market decline, while institutional investors have continued to allocate capital.
Moreover, Ripple strengthened its regulatory position after securing a full Crypto-Asset Service Provider license in Luxembourg under the European Union's Markets in Crypto-Assets framework.
The license gives XRP and RLUSD regulated access to banking services across all 27 European Union member states. In addition, market participants continue watching the progress of the US CLARITY Act as expectations build.
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Another development has emerged through blockchain activity. Autonomous artificial intelligence agents have started using native XRP for direct settlements, creating utility-driven demand that has surpassed one million transactions.
Meanwhile, analysts continue tracking the technical roadmap toward higher price levels. Bulls now focus on keeping the weekly candle above the psychological support at $1.10. After that, the next major resistance stands at the weekly Bollinger Bands midline near $1.3021. A move above that level would open a technical path toward $1.54 and eventually the $2 target.
Furthermore, Ripple's XRP Ledger continues to support cross-border remittances. Japanese banks have adopted Ripple's infrastructure for transaction processing, and that adoption pattern could continue expanding.
XRP also gained several exchange-traded funds during late 2025. Although those products launched during a bear market and produced limited price movement, they attracted notable inflows. Likewise, Bitcoin and Ethereum exchange-traded funds contributed to new all-time highs during 2025. Market participants continue monitoring whether XRP could experience a similar pattern when broader market conditions improve.
XRP continues to hold a crucial support level as Bollinger Bands, steady XRP ETF inflows, Ripple's MiCA license, and rising XRP Ledger activity support market interest. Investors now watch whether XRP can remain above $1.10 and break key resistance levels that could open the path toward $2.