XRP Faces Resistance Below $2 Amid Declining Open Interest
January 26, 2026
Finance

XRP Faces Resistance Below $2 Amid Declining Open Interest

Technical Indicators and Regulatory Developments Suggest Mixed Outlook for XRP’s Price Trajectory

Summary

XRP is currently trading below the significant $2 price level, having experienced a roughly 4% decrease over the last week. This downturn coincides with open interest falling to its lowest point since late 2025. Market analysts observe critical support and resistance zones, while recent regulatory moves in Japan and strategic partnerships in the Middle East could influence XRP's future positioning. Despite short-term pressures, long-term bullish setups remain under consideration based on structural analysis.

Key Points

XRP is trading below the key $2 level, down about 4% over the past week with open interest at a low not seen since December 2025.
Technical analysts highlight critical support zones around $1.40–$1.50 that may underpin a potential price recovery upward to $4.20 and beyond.
U.S. XRP spot ETFs continue to see daily net inflows, demonstrating sustained institutional interest despite recent price weakness.
Ripple’s partnership with Riyad Bank’s innovation arm aims to advance digital payments and asset tokenization aligned with Saudi Arabia’s Vision 2030.

XRP has recently struggled to surpass the psychologically important $2 threshold, trading around $1.90 and showing a decline of approximately 4% over the past seven days. This price movement is accompanied by a decrease in open interest, which has dropped to $3.26 billion, marking its lowest level since December 31, 2025.

In comparison to broader cryptocurrency benchmarks, Bitcoin stands at roughly $87,917 with a 5.5% weekly decrease, while Ethereum's price has fallen nearly 9.8% to $2,904. XRP's market capitalization is positioned at approximately $116.05 billion.

Technical analysts have noted the significance of current price levels. Crypto Tony points out that XRP is situated at a critical juncture; reclaiming the $1.89 price mark could indicate renewed momentum and potentially open a pathway for a sustained upward movement toward higher price targets.

Further insight from Cryptoinsightuk highlights that XRP has revisited a prior breakdown point, which on the surface suggests bearishness. Yet, the price continues to close within a substantial support band, preserving the overall technical structure. According to this analysis, while some near-term liquidity below the current price might be absorbed, the broader bullish framework remains intact. Medium to long-term targets are suggested near $4.20, with an extended cycle target ranging from $8 to $12.

From an Elliott Wave perspective, analyst XForceGlobal identifies an approaching key inflection zone for XRP. Strong support is expected in the $1.40 to $1.50 range, where maintaining that level could facilitate a larger rally, potentially pushing prices above $5. This would signal a transition in the price pattern from an impulsive move to a flat consolidation phase, which can precede substantial upward momentum.

Additional market data from Coinglass also reflects the contraction in market activity with open interest showing a notable decline. On the institutional front, U.S. XRP spot exchange-traded funds (ETFs) have recorded daily net inflows amounting to $3.43 million as of January 23, indicating some degree of continuing investor interest despite the price pullback.

Corporate developments highlight strategic progress for Ripple, the primary entity behind XRP. Reece Merrick, Ripple's Managing Director for the Middle East and Africa, announced a key partnership with Jeel, the innovation division of Riyad Bank. The collaboration aims to support Saudi Arabia's Vision 2030 initiative by exploring avenues such as cross-border payment solutions, digital asset custody, and tokenization projects.

On the regulatory front, Japan is preparing to formally recognize XRP as a regulated financial asset under its Financial Instruments and Exchange Act, expected by the second quarter of the current year. This reclassification will treat XRP as an investment product, enhancing regulatory clarity and investor protection. Moreover, it is anticipated to facilitate improved institutional access and underline the XRP Ledger's role as a foundational technology for Japan’s envisioned tokenized economy.

Overall, XRP's pricing dynamics show a complex interplay of technical pressures, evolving market interest, and significant regulatory and strategic developments. The immediate future remains uncertain, though certain technical patterns and institutional activity provide framework for potential scenarios.

Risks
  • XRP's recent revisit of a breakdown level signals potential vulnerability and could lead to short-term liquidity sweeps below current prices.
  • Open interest has decreased significantly, possibly suggesting reduced market participation and liquidity.
  • Price remaining below $2 may indicate inability to reclaim key resistance levels, risking further downside movement.
  • Regulatory shifts, despite generally positive, could bring transitional uncertainty affecting price stability.
Disclosure
Education only / not financial advice
Search Articles
Category
Finance

Financial News

Ticker Sentiment
XRP - neutral BTC - negative ETH - negative
Related Articles
XRP's Market Prospects in 2026: Assessing the Path Toward $1

The cryptocurrency sector is experiencing significant downturns at the beginning of 2026, with XRP, ...

Treasury Secretary Highlights Urgency for Crypto Regulatory Clarity Amidst Coinbase Opposition

In light of recent fluctuations in cryptocurrency markets, U.S. Treasury Secretary Scott Bessent emp...

XRP Faces Recent Decline Amid Signs of Increasing Institutional Interest

XRP has experienced a 12% decrease in value over the past week, falling to approximately $1.40 with ...

Significant Declines in Dogecoin and Shiba Inu Prompt Technical Analysis on Key Support Levels

Dogecoin and Shiba Inu experienced notable price drops recently, with both cryptocurrencies losing g...

Cryptocurrency Market Holds Steady Amid Anticipation of US-Iran Developments

The cryptocurrency market demonstrates a cautious stance as Bitcoin approaches the $69,000 mark. Oth...

American Express Expands NBA Partnership, Driving Stock Momentum

American Express (NYSE:AXP) shares advanced as the company renewed and broadened its partnership wit...