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XRP is now facing downside pressure following a weakening technical structure and increasing regulatory uncertainty. Currently XRP is priced at $2.06, falling 0.91%. It’s indeed an underperformance compared to major cryptocurrencies like Bitcoin and Ethereum. Both these cryptos are still in the consolidation phase.
XRP has technically broken past the key support area of $2.10 along with the 100-hour Simple Moving Average. It confirms the bearish outlook in the near term.
The recent drop has reached a low of nearly $2.03. After that the price entered a weak consolidation phase, rather than a strong rebound.
The price movement is still hindered by a descending trend line on the hourly chart, which has confined XRP’s recovery attempts to the zone of $2.08-$2.10.
The RSI remains below 50, and the MACD has continued to increase in the negative area, suggesting that the sellers are still dominating the control of the near-term price action.
Any effort to recover would probably encounter resistance at $2.12, aligning with the 23.6% Fibonacci retracement level of the decline from $2.41 to $2.03.
If XRP breaks this region, it will target $2.20-$2.22, followed by a stronger resistance at $2.28-$2.3.
However, from a market structure perspective, these levels currently represent sell-on-rallies zones unless accompanied by strong volume.
The downside risks remain in place if $2.10 is not reclaimed; the immediate support is near $2.02, followed by a psychologically important level of $2.00. A drop below $2.00 could lead to the targets of $1.95, $1.92, and perhaps even $1.88.
On the higher timeframe, XRP remains trapped in a broader corrective phase after its earlier rally. The $1.80-$1.90 zone stands out as a major medium-term demand area that bulls must defend to avoid a deeper retracement.
The driver for the current volatility is not just crypto news but high-level political maneuvering. On January 15 the US Senate Banking Committee is set to debate H.R. 3633, also known as the Digital Asset Market Clarity Act of 2025.
This bill is a massive deal for Ripple. It aims to define the jurisdictional boundaries between regulators, potentially ending the years of regulation by enforcement that have plagued the industry.
For traders the outcome of this session could determine whether institutional liquidity floods back into XRP or remains on the sidelines.
At the macro level, uncertainty surrounding the Federal Reserve, particularly speculation involving Jerome Powell, has increased risk aversion.
Also Read: XRP vs Bitcoin: Rare Ichimoku Breakout Signals Potential XRP Rally
XRP is right now in a difficult position under $2.10, where the short-term trend is bearish. A decisive reclaim of $2.12-$2.15 is currently needed to stabilize price action.
XRP will most probably be unstable until there is a better understanding of the regulation and the major resistance points are broken.
