​​XRP price volatility diminishes as sell-off and weak rebound test support levels

​​​XRP weighs on support area

​XRP has experienced a volatile week, marked by a sharp sell-off followed by a partial recovery, highlighting how sensitive the token remains to shifts in macro sentiment, positioning and XRP-specific narratives.

​Coming into this week, XRP had been trading defensively after a strong start to 2026. Earlier gains, driven by optimism around institutional access and improving regulatory clarity, had lifted the token sharply from late-2025 levels. However, that rally left XRP increasingly exposed to profit-taking and broader market shocks, particularly as liquidity thinned and risk appetite deteriorated across crypto markets.

​The recent sell-off was triggered by a wider risk-off move that swept through digital assets. Rising global bond yields, renewed uncertainty around the timing of future interest rate cuts and weakness in equity markets weighed heavily on high-beta cryptocurrencies.

​XRP, which tends to amplify broader market moves, came under pressure as traders cut exposure and short-term holders locked in profits from January’s advance. The move was exacerbated by technical factors, with XRP slipping below near-term support levels and triggering stop-loss orders that accelerated the decline.

​Derivatives positioning also played a role. In the days leading up to the drop, futures data pointed to an increase in long exposure as traders positioned for further upside following XRP’s strong early year performance. When momentum stalled and prices turned lower, funding rates softened and liquidations gathered pace. This forced unwinding of leveraged positions intensified the sell-off, pushing XRP lower than spot-market selling alone might have achieved.

​Following the abrupt decline, the recovery that followed has been equally instructive. Buyers stepped back in once prices reached familiar support zones, suggesting that underlying demand has not disappeared. Part of this resilience reflects XRP’s ongoing institutional and ecosystem narrative.

​Since mid-January, discussion around potential spot XRP exchange-traded products and broader institutional access has continued to support longer-term sentiment, even if it has not yet translated into sustained upside momentum.

​Ecosystem developments have also helped underpin the rebound. Ripple’s continued expansion of its payments infrastructure, particularly in cross-border settlement and emerging markets, has reinforced XRP’s utility-driven investment case. This has differentiated XRP from more purely speculative tokens and encouraged longer-term holders to view sharp dips as opportunities rather than signals of structural weakness.

​Macroeconomic dynamics remain central to XRP’s outlook. As global markets reassessed growth prospects and monetary policy expectations this week, cryptocurrencies broadly moved in tandem with risk assets. When broader sentiment stabilised, XRP benefited from a modest recovery, underscoring its close correlation with shifts in risk appetite. However, the rebound has so far been rather weak, reflecting lingering caution among investors after the speed of the earlier sell-off.

​Taken together, this week’s price action highlights XRP’s current balancing act. On one hand, the token remains vulnerable to sudden swings driven by macro shocks and leveraged positioning. On the other, the fact that technical support is so far holding suggests that confidence tied to institutional interest, regulatory progress and real-world payments adoption remains intact.

​Looking ahead, XRP’s near-term direction is likely to depend on whether broader market conditions stabilise and whether buyers can build on this recovery without renewed selling pressure from shorter-term holders.

​For now, the sharp sell-off and sluggish rebound serve as a reminder that while XRP’s longer-term narrative has strengthened since mid-January, volatility remains a defining feature of its journey through 2026.

​XRP bearish case:

​While XRP remains below this Monday's high at $2.0283 on a daily chart closing basis, immediate downside pressure dominates with the $1.9161 - $1.8570 support zone expected to be probed further.

​Were this support area to succumb to renewed selling pressure, the November to December lows at $1.8193 - $1.7713 would likely be revisited.

​Failure there may put the April low at $1.6153 on the map.

​XRP bullish case:

​As long as XRP manages to hold in the $1.9161 - $1.8570 support zone on a daily chart closing basis, another attempt at the upside may ensue.

​For this to become more likely, a rise and daily chart close above the $2.0283 - $2.0859 resistance area would need to ensue. In this case the way would be open for the early January peak at $2.4159 to be back in sight.

​Short-term outlook:

Bearish while below the 19 January high at $2.0283; a rise above this level would change the outlook to a neutral one, though.

​Medium-term outlook:

Neutral with a bearish bias while trading below the 14 January high at $2.1905 but above its $1.8193 November low.

XRP daily candlestick chart