XRP price shows signs of bottoming out and rebounding: technical and on-chain data resonate, opening up an 11% upside potential

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XRP3,66%

January 26 News, XRP has been under continuous pressure since January 2026, with the price falling back to a stage low, but the market structure is quietly changing. Although it still appears to be in a weak zone on the surface, historical trends and on-chain data indicate that the current situation is more like a phase of exhausted selling pressure rather than the start of a new decline, providing a realistic basis for XRP price rebound.

On-chain indicators show that the confidence of long-term XRP holders is strengthening. Over the past six weeks, XRP activity indicators have significantly decreased and have fallen to a two-month low. This indicator measures whether tokens are being frequently transferred or held long-term. The current decline suggests more investors are choosing to hold rather than sell. The continued accumulation by long-term funds during the correction is reducing the circulating supply in the market, creating conditions for a subsequent rebound. This is also a key signal that many investors are paying attention to when monitoring “XRP on-chain data” and “XRP holdings changes.”

Momentum indicators also send positive signals. The Relative Strength Index (RSI) previously fell below 30 into oversold territory and then quickly rebounded. Generally, when RSI recovers from extreme oversold levels, it indicates that weak hands have been cleared out and selling pressure is waning. Coupled with the continued accumulation by long-term holders, this resonance of technical and behavioral signals often corresponds to the opening of a short-term rebound window.

From a price structure perspective, XRP has been trading within a descending wedge since the beginning of this month. This pattern is often viewed as a potential bullish reversal structure, indicating that downward momentum is gradually weakening. Once the price effectively breaks above the upper trendline of the wedge, the theoretical upside is about 11.7%. Based on the current price of approximately $1.87, the technical target is close to $2.10, with around $2.03 being a key area to confirm the breakout.

Of course, risks still exist. If XRP fails to break above the wedge and weakens again, the price could retest $1.79, and in extreme cases, even drop to $1.75, which would negate the reversal expectation.

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