XRP is trading near a critical technical area after weeks of steady selling pressure, according to a daily chart shared by Rose Premium Signal. The XRP/USDT pair on Binance shows price hovering near $1.92, reflecting modest intraday stability. The chart source, TradingView, places the move within a broader corrective structure that began after an early January peak above $2.30.
Price action continues to respect a descending channel that has guided XRP lower through a sequence of lower highs and lower lows. As a result, XRP has returned to a demand zone between $1.80 and $1.90. This zone extends back to late December and has previously acted as a base for rebounds.
At the same time, regulatory developments in Japan have entered focus. Reports indicate the country may classify XRP as a financial product under updated rules by Q2 2026. This timing places technical stabilization and regulatory clarity on a converging path.
The daily chart outlines a corrective decline following a sharp impulsive rally at the start of the year. After topping above $2.30, XRP entered a controlled pullback within a clearly defined descending channel. This structure has remained intact for several weeks.
Price now trades within a horizontal demand zone between $1.80 and $1.90. Rose Premium Signal marks this region as a long accumulation area. Specific long entries appear at $1.90 and $1.80, reflecting layered positioning.
Risk management levels also appear on the chart. A stop-loss sits at $1.70, below prior structural lows. This placement defines downside exposure while maintaining alignment with the broader channel structure.
From a projection standpoint, the chart maps a potential recovery scenario. A bounce from the demand zone could trigger a move toward broken trendline resistance. That step would mark the first technical confirmation of a shift in momentum.
Upside targets appear in stages. The first target sits at $2.20, followed by $2.30. A final extension reaches $2.40, which aligns with prior resistance and the signal provider’s stated next target.
This setup reflects a classic corrective pullback into demand. Defined risk levels and layered upside objectives frame the structure as XRP attempts to stabilize after sustained selling pressure.
Japan is reportedly preparing to classify XRP as a financial product under the Financial Instruments and Exchange Act. Market analyst Xaif Crypto notes the change could take effect by Q2 2026. The move would place XRP under stricter oversight.
Most digital assets in Japan currently fall under the Payment Services Act. Reclassification would introduce tighter exchange licensing rules, stronger investor protections, and enhanced anti-money laundering requirements. This shift would also reduce legal uncertainty for institutions.
Japan is also leveraging the XRP Ledger for its emerging tokenized economy. Major Japanese banks have accelerated adoption of the network, signalling growing institutional engagement. Could this regulatory clarity reshape how global markets approach XRP?
Read More: Why XRP's Liquidity Lock-in Pattern Could Fuel a Massive Breakout
XRP trades near a key demand zone after a prolonged corrective move, with clear technical levels defining risk and upside targets. At the same time, Japan’s plan to classify XRP under the Financial Instruments and Exchange Act adds regulatory clarity. Together, price structure and policy developments place XRP at a critical market juncture.