XRP January 2026 Roller Coaster: From a 20% Surge to a Sharp Pullback — Technical Analysis

XRP has delivered a volatile start to January 2026, swinging from notable gains to an abrupt correction. The token in the first week of the month, peaking near $2.41 on Jan. 6, before retracing to trade around $1.91 at the time of this report. This wide price swing highlights both renewed buying interest and persistent profit-taking pressure.

Market context: The initial surge to about $2.41 reflected renewed inflows and short-covering after a period of consolidation. Buyers pushed XRP into a higher range, but the rally met significant resistance near the $2.35–$2.45 zone where liquidity and sell orders clustered. The subsequent pullback to ~$1.91 reveals that bulls were unable to sustain momentum above those resistance levels, allowing bears to reassert control and test nearby support.

Key technical levels: Immediate support for XRP now sits near the $1.80–$1.88 band, backed by prior intraday lows and short-term moving averages. A break below that region could open the path toward psychological support near $1.50 and the next structural floor around $1.20. On the upside, reclaiming and holding above $2.20 would be an important step for bulls, while a definitive close above $2.40 would validate the earlier breakout and could extend momentum to previous multi-month highs.

Volume and momentum: The January spike was accompanied by elevated volume, indicating genuine buying pressure rather than a shallow move. However, the retracement was also supported by significant volume, suggesting that profit-taking and risk-off trading dominated the reversal. Momentum indicators show a cooling of bullish momentum after overbought readings during the surge; this leaves the market vulnerable to further short-term weakness unless accumulation resumes.

Potential drivers: Short-term XRP price dynamics can be driven by a mix of speculative flows, macro sentiment toward risk assets, and any news specific to the XRP ecosystem. Traders should monitor liquidity around key resistance zones and watch for on-chain signals such as large transfers or exchange flows that could signal accumulation or distribution.

Trading implications and risk management: For traders, the current environment favors a cautious, structured approach. Those seeking long exposure may prefer to wait for a confirmed hold above $2.20 with improving volume, or to scale in near the $1.80 support with tight risk controls. Short-term sellers might target the $1.80 area as a potential take-profit zone while managing stops above resistance levels. Use position sizing to limit downside should volatility spike again.

Scenarios to watch: Bull case — sustained reclaim of $2.20 followed by a daily close above $2.40, leading to renewed upside and a test of higher resistance. Bear case — failure to defend $1.80 leads to a deeper correction toward $1.50 or lower. Neutral case — consolidation between $1.80 and $2.20 as market participants digest the recent move and await fresh catalysts.

Conclusion: January’s price action underscores that XRP remains sensitive to rapid sentiment shifts. The token’s 20% jump and swift pullback show that while buyers are ready to push prices higher, sellers remain active at key resistance. Traders and investors should prioritize clear technical confirmation, watch volume and on-chain flows, and manage risk carefully amid heightened volatility. Expect choppy conditions in the near term until a clear directional bias forms above $2.20 or below $1.80.