XRP price action has moved into a bearish phase after a multi-day rally at the start of the year, but technical analysis implies that this could be part of a bullish structure.
After going from less than $2 on January 1 at $2.41 on January 6the market has started to digest these gains. The question now is whether short-term Fibonacci price levels can hold while momentum resetsthe next directional move set to define XRP’s near-term trajectory.
XRP Rally Sets Context for Current Pullback
XRP current price action in the last 24 hours trace a downward retracement. In particular, this retracement follows a strong upward movement it started at the beginning of the week. To put this into context, XRP opened in January 2026 at around $1.85, but climbed as high as $2 on January 6, equating to a 30% increase during this period.
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On January 4, XRP was trading between $2.01 and $2.12 before demand accelerated. On January 5, intraday price action extended into the $2.09 to $2.36 range, reflecting a clear resumption of momentum. The rally extended through January 6-7, when XRP briefly rose above $2.41 before sellers began to step in.
According to technical analysis shared on According to TARA, the pullback pushed XRP price all the way to the 0.236 Fibonacci retracement, or around $2.27. This level has quickly become an important area of interest, as it represents the first significant support following the recent upward impulse. The chart accompanying the analysis shows that prices react neatly around this area, with XRP falling all at once on the 4-hour candlestick period.
What to expect next for XRP
The momentum indicators on the chart suggest that the correction is still underway, but not in a way that signals structural weakness. The 14-SMA is rising towards price and could act as dynamic support, which often helps limit the downside during healthy retracements.
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According to the analyst, XRP needs to revisit the $2.30 to $2.33 zone during this corrective wave. This region previously served as resistance and can now determine whether the retreat remains superficial or extends further.
If XRP fails to reclaim this zone, analysis indicates a deeper but still technical retracement towards the 0.382 Fibonacci level around $2.18. Even in this scenario, the move would still be consistent with a strong 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 retracement finds a confirmed low. Based on the current structure, upside targets are projected in the range of $2.49 to $2.66, but adjustments are expected based on the low point of the correction.
Featured image from Freepik, graphic from Tradingview.com
