XRP Drops Nearly 20% into Extreme Fear Zone, Analysts Predict Rally
- Investor Sentiment Shift: XRP has dropped nearly 20% since early 2026, currently trading below $2, with investor sentiment turning cautious as retail traders express increased pessimism, reflecting growing concerns about the asset's outlook.
- Historical Patterns Indicate Rebound: Despite the current bearish sentiment, historical data suggests that when the sentiment index falls below 1.873, XRP typically rebounds; for instance, after a 30% decline in Q4 2025, XRP surged to $2.41 in early 2026, marking a 29% increase.
- ETF Outflows Impact: On January 21, US spot XRP ETFs experienced a net outflow of $53 million, exacerbating negative sentiment in the market, although some analysts view this as a buying opportunity, indicating that periods of fear often lead to unexpected rallies.
- Signs of Short-Term Recovery: Currently priced at $1.94, XRP has shown a slight recovery with a 2.11% daily increase, bouncing back from a weekly low of $1.80 despite a 7.5% drop over the past week, signaling potential for a short-term rally.
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Technical Analysis for XRP
Technical Sentiment Analysis for XRP (XRP). As of , XRP (XRP) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for XRP stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, XRP is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
XRP (XRP) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 1.111 | 1.195 | 1.268 | 1.353 | 1.426 | 1.511 | 1.584 |
| Fibonacci | 1.195 | 1.256 | 1.293 | 1.353 | 1.413 | 1.451 | 1.511 |
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