XRP’s price action has entered a bearish phase after a multi-day rally at the beginning of the year, but technical analysis implies that this could be part of a bullish structure.
After rising from below $2 on January 1 to $2.41 on January 6the market has started to absorb these gains. Now the prospects are whether Fib price levels will rise in the short term can hold if the momentum is resetwith the next change in direction expected to determine XRP’s short-term trajectory.
XRP’s rally provides context for the current pullback
XRPs current price action There has been a downward retracement over the past 24 hours. Particularly this retracement follows a strong upward movement that started earlier this week. To put this in context, XRP opened at around $1.85 in January 2026, but shot up to $2 on January 6, representing a 30% increase within that time frame.
Related reading
On January 4, XRP was trading roughly between $2.01 and $2.12 before demand accelerated. On January 5, intraday price action extended to the range of $2.09 to $2.36, reflecting a clear recovery in momentum. The rally lasted until January 6 and 7, when XRP briefly rose above $2.41 before sellers intervened.
According to technical analysis shared on X by TARA, the pullback pushed the XRP price towards the 0.236 Fibonacci retracement, which amounts to around $2.27. This level has quickly become a key area of interest as it represents the first meaningful support after the recent push higher. The chart accompanying the analysis shows that the price responds nicely around this zone, with XRP falling in one swift move within the 4-hour time frame.
What to expect next for XRP
Momentum indicators on the chart indicate that the correction is still ongoing, but not in a way that signals structural weakness. The 14-SMA is rising towards price and could act as dynamic support, often helping to limit the downtrend during healthy retracements.
Related reading
According to the analyst, XRP should revisit the $2.30 to $2.33 area during this correction wave. That area previously acted as resistance and can now determine whether the relapse remains superficial or extends further.
If XRP fails to reclaim that zone, the analysis points to a deeper but still technical pullback towards the 0.382 Fibonacci level around $2.18. Even in that scenario, the move would remain consistent with a sharp cooling of the trend, rather than a collapse of the bullish structure.
Despite the ongoing correction, the broader outlook outlined in the analysis is optimistic. XRP is likely to return to its previous highs once the retrace finds a confirmed low. Based on the current structure, upside targets are expected in the $2.49 to $2.66 range, but adjustments are expected depending on where the correction ultimately bottoms out.
Featured image from Freepik, chart from Tradingview.com