XRP Faces New Price Scenarios as It Struggles Inside Descending Channel

TLDR

• XRP entered 2026 trading inside a descending channel after closing 2025 with a yearly loss.
• The token faced rejection near $2.7 in late October 2025 which triggered a sustained price drop.
• XRP printed lower highs in Q4 2025 confirming a descending channel pattern on the daily chart.
• The price recovered above $2 in early 2026 gaining over 10 percent in the first three days.
• The bullish scenario expects XRP to break above $2.1 and retest the $2.75 resistance area.

XRP entered 2026 inside a multi-month descending channel after closing 2025 with its first red yearly candlestick since 2022, the asset dropped 11.51% over the year, falling from its $3.1 peak in October to close at $1.84, and now analysts have outlined both bullish and bearish case scenarios from the current structure.

XRP Sees Rejection at $2.7 Region and Confirms Downtrend

XRP faced strong rejection at the $2.7 to $2.75 resistance level in late October 2025. This occurred after an attempted recovery from the sharp October 10 crash.

The rejection triggered sustained losses that pushed XRP into a confirmed descending channel. The asset printed lower highs and lower lows throughout Q4 2025.

This price pattern confirmed the start of a downtrend that capped any recovery efforts. “The $2.7 zone flipped into resistance,” Chart Nerd explained.

That flip played a key role in guiding the price downward through the final quarter. It also marked the beginning of sustained technical weakness.

The descending channel has since limited upward price action. XRP closed 2025 at $1.84, well below its October peak.

XRP Shows Early 2026 Recovery but Faces Resistance at $2.1

XRP rebounded above $2 in early 2026 for the first time in three weeks. The asset gained 10.77% within the first three days of January.

This short-term recovery suggests rising momentum and higher lows. According to Chart Nerd, this shift could compress momentum further and trigger volatility.

He highlighted that XRP bounced after retesting the lower channel support between $1.6 and $1.77. That bounce reinforced the structural validity of the descending channel.

XRP is now changing hands at $2.03. The resistance at the top of the channel currently stands around $2.1.

This level must be breached for any further bullish scenario to unfold. Until then, XRP remains inside the channel structure.

Bullish Case Targets $2.75 While Bearish Case Points to $1.6

Chart Nerd outlined two scenarios from the current price point. In the bullish case, XRP breaks above the $2.1 resistance.

Such a move could lead the XRP price toward the $2.7 to $2.75 zone. That zone previously served as support before flipping to resistance.

“Reclaiming that area would shift XRP’s macro structure,” the analyst said. The price must hold above $2.75 for confirmation.

In the bearish case, XRP could fail to breach the $2.1 resistance. This would keep it within the channel’s constraints.

A rejection could send XRP back toward the $1.6 level. That zone last acted as support in April 2025.

Chart Nerd emphasized that “XRP is building momentum regardless of direction.” However, the asset remains inside the descending channel.

As of now, XRP trades slightly below the $2.1 resistance trendline. Market participants continue tracking whether it can break out or face a new correction.

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