XRP Price Holds Key Support as 2026 Approaches

This article was first published on The Bit Journal.

In 2026, XRP price trading below $2 means that XRP is in a cautious market, not yet a fear market. Although the strong impetus is not yet, improving technical architecture, relatively stable participation and incremental institutional signals continue to form expectations.

XRP price is sitting roughly at $1.89, up about 0.8% in the last 24 hours. Trading volume is up to $1.59 billion, indicating steady market participation without any signs of overstretched speculation. Buyers seem to be reentering slow after weeks of tedious sideways action.

More recent price action is suggestive of consolidation rather than weakness. XRP price uptrend remains intact XRP has been successfully holding the bears off its lower end and the selling pressure is diminishing as far as past declines are concerned.

XRP Price Maintains Structure Inside a Slowing Downtrend

On the four-hour chart, XRP price remains confined within a descending channel that formed after the recent peak near $2.11. Although lower highs are still visible, the channel has begun to flatten. This change suggests that sellers are losing momentum rather than increasing pressure.

Also Read: XRP Could Hit $5 by 2026, Analysts Say, as Positioning Shifts and Flows Hold Strong

Price action has slowed significantly, with movements becoming tighter and more controlled. Such compression often appears before a larger directional move begins to take shape.

Candle Behavior Points to Ongoing Indecision

Recent candlestick patterns show small-bodied candles along with frequent doji formations. These signals typically indicate uncertainty rather than a strong directional bias. XRP price has continued to rebound from the $1.85 to $1.86 support zone.

Each dip into that area has attracted buyers quickly, showing consistent demand. Sellers, by contrast, have struggled to push price lower with conviction.

Moving Averages Indicate a Reset in Momentum

XRP price remains just below the 50-period exponential moving average near $1.88 and the 100-period EMA around $1.92. From a short-term perspective, momentum remains neutral. However, both averages have started to level out.

Price is no longer drifting sharply away from these indicators. Instead, it is trading close to them, which often signals that the market is preparing for a stronger move.

Momentum Indicators Reflect Stability, Not Exhaustion

Momentum indicators support the view that the market is stabilizing. The relative strength index has eased into the low 50s, staying well above oversold territory. No bearish divergence has appeared so far.

Momentum is gradually improving without becoming overheated. For XRP price, this balance suggests accumulation rather than distribution.

Key Price Levels Shape Short-Term Outlook

From a structural standpoint, XRP price is approaching a critical decision zone. A decisive break above $1.92 could open the door toward $1.96 and then $2.05. If buying strength holds, $2.10 could return as an important resistance level.

On the downside, a loss of support at $1.85 would weaken the setup. In that case, price could slide toward $1.77, with $1.65 acting as deeper support near the lower boundary of the channel.

Escrow Unlock Brings Supply Into Focus

Market attention has also shifted to XRP’s supply dynamics ahead of a scheduled 1 billion token escrow unlock on January 1. As the first unlock of 2026, the event naturally raises short-term concerns about circulating supply.

Year-end periods often come with reduced liquidity, which can amplify reactions to supply-related headlines. XRP price has historically shown sensitivity to such events in the short term.

Past Behavior Limits Long-Term Supply Risk

Despite the size of the unlock, historical trends provide reassurance. Ripple has consistently re-locked a significant portion of released tokens. In recent months, roughly 60% to 80% of unlocked XRP returned to escrow.

In December 2025, close to 70% of unlocked tokens were secured again, limiting the actual increase in circulation. This pattern has helped contain prolonged pressure on XRP price.

Institutional Strategies Continue to Expand

Institutional demand for the XRP ecosystem continues to grow. Few investors are seeking straight token exposure, instead looking into structured or indirect plays. This is a way to have regulatory response and still have the position, not short lived exposure.

Such methods epitomise an increasing long-term view of the overall space, as opposed to solely price speculation.

Conclusion

XRP price remains below $2, but the broader setup is changing. Support levels continue to hold, selling pressure has eased. The supply risks appear manageable based on historical behavior. As 2026 approaches, the market looks increasingly prepared for a decisive move.

Also Read: Top Crypto Assets to Watch This Christmas: BTC, ETH, and XRP Ready for 2026 Momentum

Appendix: Glossary of Key Terms

Descending Channel: A price pattern on a chart in which a security’s high and low prices trend downward between two parallel lines.

Support Level: A price area that buying interest keeps prices from penetrating lower.

Resistance: A price level that, historically, a stock has had difficulty rising above.

Exponential Moving Average (EMA): A trend-following indicator that gives more weight to recent trading activity.

RSI (Relative Strength Index): A momentum indicator that drives overbought or oversold readings.

Escrow Unlock: A prescheduled released of locked tokens to the potential market supply.

Institutional Interest: The intervention of major financial institutions in the market using structured products.

Frequently Asked Questions About XRP Price

1- Why is XRP price still trading below $2?

The market remains in consolidation as buyers and sellers wait for clearer momentum signals.

2- Which support level is most important right now?

The $1.85 area remains critical, as buyers have defended it multiple times.

3- Does the escrow unlock pose a major risk?

Historically, most unlocked tokens are re-locked, reducing long-term impact.

4- Is institutional interest in XRP fading?

No, it is shifting toward indirect and structured exposure instead.

References

CryptoNews

FXLeaders

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