Following a prolonged downtrend that has marked the beginning of January, the XRP price near 1.87 dollars seems to have found a solid floor. According to data analyzed this January 26 by specialist Aaryamann Shrivastava, the digital asset shows signs of sell-side exhaustion, suggesting an imminent reversal of its bearish trajectory.
This consolidation phase, which occurs after reaching monthly lows, has piqued the interest of long-term investors, who have begun to aggressively accumulate the token. Current technical indicators, such as the Relative Strength Index (RSI), have bounced from oversold zones, which historically signals the start of a trend shift in the market.
Likewise, the on-chain Liveliness metric has fallen to its lowest level in two months, confirming that holders are choosing to keep their assets rather than distribute them. This reduction in circulating supply, combined with the capitulation of weaker investors, strengthens the structure necessary for a price rebound in the short term.
Descending wedge technical formation anticipates a bullish movement
On the other hand, the XRP’s price of Ripple is trapped within a descending wedge pattern since the beginning of the month, a formation that usually precedes positive impulses. If buyers manage to maintain control, the asset could experience an 11.7% rally toward the 2.10 dollar target, finally breaking the constant selling pressure.
However, the final validation of this move requires the asset to convincingly overcome the intermediate resistance located at 2.03 dollars. The use of this technical analysis technology allows identifying that, although general sentiment has been bearish, accumulation fundamentals are laying the groundwork for a moderate and sustained recovery.
What risks does the asset face if it fails to break current resistance?
Because the crypto market remains highly volatile, a failure to break out of the wedge could invalidate the current bullish thesis. Thus, if selling pressure intensifies, the value could slide toward 1.79 dollars, and even test the critical support located at 1.75 dollars during the coming days.
Finally, the behavior of large holders will be the determining factor in defining the digital currency’s direction in February. It is expected that as long as the RSI remains out of the oversold limits, the probability of a relief rally will continue to be the most plausible projection, providing a strategic opportunity for those closely monitoring market cycles.
