Ripple’s native cross-border token is trading near a zone that could shape its next move. After pulling back from early January highs of $2.40, the price is retesting a key resistance area. Market participants are now watching whether XRP breaks higher or resumes its decline.
Price Tests Key Resistance at $1.97
At press time, XRP is trading around $1.89 and is testing a descending trendline that had acted as support before the recent breakdown. This trendline, now turned resistance, aligns with the $1.97 level. A move above this area may shift the short-term structure, opening the door for further upside.
According to analysis from More Crypto Online, the current bounce has brought XRP back to this technical zone. If the price pushes through and holds above $1.97, the correction may “become far more complex.” A rejection at this level would support a bearish outlook.
$XRP
The price is now retesting the yellow trendlines from below. Key spot here. $1.965 is the next resistance above. If the price extends higher from here then this entire correction will become far more complex. pic.twitter.com/DAhTmRrfsm
— More Crypto Online (@Morecryptoonl) January 26, 2026
Notably, the chart presents a potential corrective wave structure marked as (A)-(B)-(C). XRP’s recent action fits within this framework. If the downward pattern remains valid, price levels near $1.85, $1.77, $1.73, and $1.66 are being tracked as possible support.
Traders are also focused on $1.80, a level tested multiple times over the past year. Whale Factor pointed to the current range between $1.80 and $2.10 as a possible setup for increased volatility, depending on which side breaks first.
Momentum Indicators Show Early Shift
A falling wedge pattern was recently broken to the upside, leading to a short-term recovery. This pattern often points to exhaustion in a downtrend. Volume rose slightly during the breakout, but has not yet confirmed strong buyer control.
Momentum signals are showing signs of change. On the MACD histogram, red bars have decreased, suggesting fading selling pressure. Analyst CW shared that a sub-indicator is pointing to a trend shift, with a convergence break suggesting early bullish momentum.
However, XRP saw large movements in January, with 130 million tokens transferred to exchanges, according to Steph Is Crypto. As we reported yesterday, Binance’s XRP balance rose to 2.74 billion, reaching its highest level since November. Some traders see this as increased liquidity returning to the market.
WHALES MOVED 130M $XRP TO EXCHANGES IN JANUARY.
WHAT DO THEY KNOW? pic.twitter.com/zt2QWXptqa
— STEPH IS CRYPTO (@Steph_iscrypto) January 26, 2026
Data from Coinglass shows a 17% drop in trading volume, while open interest rose by nearly 3% to $3.38 billion, indicating that new positions are being built. These shifts reflect growing anticipation around XRP’s next direction.
The post Ripple Reversal Ahead? XRP Faces Major Test appeared first on CryptoPotato.