XRP is showing early signs of a potential rebound after weeks of sustained selling pressure. Following a nearly three-week downtrend that wiped more than 20% off its value, XRP has now broken out from a key descending trendline a move that has traders watching closely for a short-term trend reversal.
XRP briefly dipped to a January low of $1.81, extending losses from its early-month high near $2.39. Zooming out, the token remains roughly 48% below its all-time high from July last year, reflecting how hard recent macro and regulatory headwinds have hit the market.
Macro pressure weighed on XRP but demand stayed steady
XRP’s decline unfolded alongside a broader crypto pullback, driven by geopolitical uncertainty around U.S. tariff disputes, renewed concerns about a potential U.S. government shutdown, and delays surrounding the crypto market structure bill. Expectations of a more hawkish Federal Reserve policy stance this year have also kept risk appetite muted.
Despite this challenging backdrop, several indicators suggest underlying demand for XRP has remained resilient.
Stablecoin supply on the XRP Ledger has grown by roughly $100 million this month, bringing the total to about $407 million. Rising stablecoin balances on a network often signal that investors are positioning capital for deployment rather than exiting the ecosystem.
At the same time, XRP ETFs have seen only two days of outflows in January, with cumulative net inflows reaching approximately $67.8 million. Even amid market volatility, these figures suggest institutions continue to view XRP as a strategic long-term holding.
On-chain data from CoinGlass adds another supportive signal. XRP exchange outflows have consistently exceeded inflows over recent weeks, indicating that investors are moving tokens into self-custody rather than preparing to sell.
Technicals tilt in favor of bulls
From a chart perspective, XRP has delivered its most constructive signal in weeks. On the 4-hour timeframe, price has broken above a descending trendline that had capped rallies since the start of 2026.
That trendline forms part of a falling wedge pattern a classic bullish reversal structure marked by two converging, downward-sloping trendlines. A breakout above the upper boundary of the wedge often signals that sellers are losing control and buyers are regaining momentum.
With the breakout confirmed, technical projections point to a potential move toward $2.23, derived by measuring the height of the wedge and adding it to the breakout level. If momentum continues to build, bulls could even attempt a retest of the January high near $2.39.
Key risk level to watch
The bullish outlook is not without risk. If XRP fails to hold above the $1.80 psychological support level, the breakout scenario would likely be invalidated. Given the broader market’s still-fragile, risk-off tone, renewed volatility remains a real possibility.
For now, however, XRP’s combination of steady on-chain demand, resilient ETF flows, and a confirmed bullish chart pattern suggests the token may be setting up for a relief rally provided buyers can defend key support levels.
