XRP’s Pivotal Moment: Navigating the $1.75 Support with Eyes on a $2.60 Rebound
As of January 26, 2026, XRP finds itself at a critical technical juncture, capturing the intense focus of the cryptocurrency market. The digital asset is currently trading at approximately $1.87, precariously close to a widely recognized and pivotal support level of $1.75. This price point is not just another number on the chart; analysts are framing it as a definitive make-or-break zone that will dictate the token's short to medium-term trajectory. The prevailing sentiment among market watchers is one of heightened anticipation, with two distinct paths emerging: a sharp, V-shaped recovery or a breakdown leading to further downside. The robust trading volume, reported at $4.78 billion, underscores the significant market interest and capital flows surrounding this key test. Such high liquidity indicates that both institutional and retail participants are actively positioning themselves, awaiting a decisive move. Technical analysts posit that a firm hold and bounce from the $1.75 support could act as a powerful springboard. This scenario WOULD validate the support level's strength and potentially catalyze a strong bullish impulse. The rebound target for this optimistic outlook is set at $2.60, representing a substantial upside from the current price and suggesting renewed bullish conviction in XRP's market structure. Conversely, a failure to maintain this support could trigger increased selling pressure, invalidating the bullish setup and likely pushing the price to seek lower support levels. The current consolidation near $1.87 reflects this moment of equilibrium before the next significant directional move. This period is crucial for assessing market sentiment and accumulation patterns. For investors and traders, the coming days are pivotal. Monitoring price action around the $1.75 level, along with volume confirmation on any breakout or breakdown, will be key to confirming the next major trend for XRP. The outcome will not only impact short-term trading strategies but also provide critical insights into the broader strength and investor confidence in the XRP ecosystem as we advance further into 2026.
XRP Nears Critical $1.75 Support as Analysts Eye Potential Rebound to $2.60
XRP hovers NEAR a pivotal $1.75 support level, with market watchers anticipating either a sharp rebound or further downside. The token's current price action at $1.87 represents a make-or-break moment, according to technical analysts tracking its trajectory.
Trading volume remains robust at $4.78 billion, reflecting heightened interest as XRP tests key thresholds. A decisive hold above support could fuel a V-shaped recovery targeting the $2.20-$2.60 resistance zone, while failure may trigger extended losses.
EGRAG CRYPTO's analysis identifies $3.20 as the next significant psychological barrier should bullish momentum accelerate. Market participants await confirmation of either direction, with the token's 0.89% daily decline underscoring current caution.
XRP Price Forecast Turns Cautious Amid Macro Headwinds and Regulatory Uncertainty
XRP-linked ETFs recorded their first week of net outflows, with over $40 million exiting the funds, signaling reduced institutional demand and growing bearish sentiment. Geopolitical risks and trade policy uncertainty, including U.S. President Donald Trump's proposed tariffs on European NATO members, have further dampened investor confidence.
Stronger U.S. economic data and cautious Federal Reserve commentary have tempered expectations of rate cuts in 2026. The Bank of Japan's hawkish stance adds to global liquidity concerns, weakening risk appetite for cryptocurrencies. Regulatory uncertainty persists as the U.S. crypto market Structure Bill faces delays in Congress, leaving XRP vulnerable due to its history of regulatory sensitivity.
XRP Burn Surge: Signs a Price Comeback Is Brewing in 2026
XRP has begun to show renewed activity after a period of stagnation, with its burn rate climbing 1% as 400 coins were destroyed through transaction fees. This uptick in network usage suggests a potential shift in market sentiment, even as the broader crypto market grapples with low volatility and erratic price movements.
On-chain data reveals that XRP's unique behavior—increased activity during price declines—historically precedes renewed investor interest. The growing demand for payment transactions signals reduced selling pressure, as holders prioritize utility over speculation.
CryptoQuant's metrics highlight this divergence: while most assets face sideways trading, XRP's burning mechanism is accelerating. The token's deflationary design could position it for outperformance when market conditions improve.
XRP Flashes Rare Buy Signal as Wall Street Accumulates Distressed Supply
XRP's market dynamics reveal a compelling divergence between retail panic and institutional accumulation. The asset's 30-day Market Value to Realized Value (MVRV) sits at -5.7%, signaling one of the most pronounced undervaluations since 2022. Historical patterns suggest such extremes typically precede rallies of 20-40% within 60 days.
Blockchain analytics firm Santiment notes the current price near $1.88 represents a structural reset rather than temporary weakness. The 30-day cohort's breakeven point at $1.99 creates a clear technical magnet. Meanwhile, stablecoin reserves across exchanges hit record highs this week, indicating available capital waiting for entry points.
Derivatives markets tell a contrasting story. While spot accumulation continues, perpetual swap funding rates remain negative—a rare alignment that last occurred before XRP's 110% surge in Q4 2023. This divergence between spot demand and Leveraged positioning often precedes explosive moves.
