The price of XRP is navigating a crucial technical juncture, consolidating near the $2.18 support level after a corrective wave. On January 8, 2026, XRP traded around $2.11, marking a decline of over 4% in 24 hours. Analysts note the cryptocurrency completed the final subwave of a corrective pattern at the 0.382 Fibonacci retracement level near $2.18, a zone now deemed critical for maintaining bullish structure.
Technical indicators present a mixed but cautiously optimistic picture. A TD Sequential buy signal appeared on the 1-hour XRP/USD chart, suggesting potential short-term exhaustion in selling pressure. Furthermore, the Relative Strength Index (RSI) on the same timeframe has shifted from overbought to oversold, hinting at a possible relief rally for buyers. Analysts emphasize that while these signals highlight potential, confirmation through price structure and volume is essential.
The immediate outlook hinges on XRP's ability to hold above key support levels. The area between $1.95 and $1.96 is identified as a major downside level to watch, with a clear break below potentially opening the door to a drop toward $1.80, which would invalidate the current bullish thesis. On the upside, any recovery faces significant resistance near $2.34, with analysts targeting the $2.49–$2.66 range for a potential next upward wave if support holds and a breakout occurs.
This price action unfolds against a broader mixed cryptocurrency market, with total market capitalization at approximately $3.1 trillion, down 0.7% over the past day. Bitcoin holds near $91,000, while Ethereum trades above $3,100. Analysts also note that XRP's near-term trajectory is somewhat tied to Bitcoin completing its own short-term correction.
Beyond technicals, Ripple's ongoing progress in payments infrastructure and regulatory clarity is cited as providing a credible foundation for XRP's long-term growth potential. However, for the immediate future, traders are advised to monitor for confirmation of a rebound through candle structure and a break above descending trendlines, while remaining cautious of the continued short-term volatility.
