XRP (XRP) is showing signs of technical stabilization amid recent market turbulence, holding critical support at $2.18, while short-term indicators suggest a potential bounce.
After a recent corrective wave, XRP appears to be stabilizing, offering traders a key level to watch. Analysts point to TD Sequential signals and Fibonacci retracement support, suggesting that the cryptocurrency could be preparing for renewed upward momentum if broader market conditions align. Ripple’s ongoing adoption and regulatory clarity further support XRP’s potential to recover and strengthen in the near term.
XRP Stabilizes at Key Support
On January 8, 2026, XRP traded around $2.11, marking a 4.05% decline over 24 hours. According to wave analyst @PrecisionTrade3 on X, XRP reached $2.30 during a subwave B rally before completing the final subwave C of a corrective pattern at the 0.382 Fibonacci retracement level near $2.18.
XRP holds $2.18 support as the final correction wave finishes, targeting $2.58 in the next upward move. Source: @PrecisionTrade3 via X
“This level is critical as XRP needs to hold here while Bitcoin completes its own short-term correction,” the analyst noted, highlighting the influence of broader crypto movements on XRP.
Community responses were mixed. Some traders are targeting $2.49–$2.66 as the next upward wave, while others warned that a drop below $1.80 could invalidate the bullish structure.
TD Sequential Buy Signal Sparks Optimism
Technical analyst @alicharts highlighted a TD Sequential buy signal on the 1-hour XRP/USD chart, which counts down to nine before signaling potential short-term exhaustion in selling. This setup was followed by an upside-down reversal triangle, suggesting the possibility of a bounce from the $2.17–$2.20 zone.
XRP bounces off key support as the TD Sequential buy signal signals potential short-term upside. Source: @alicharts via X
“TD Sequential buy signals often indicate temporary exhaustion rather than guaranteed reversals. Confirmation through price structure and volume is essential,” the analyst explained.
Wave-focused analysts are monitoring the higher-low formation near $2.18, while momentum traders await a break above the descending trendline to confirm further upside.
Technical Indicators Show Bullish Potential
TradingView analyst CryptoColugo emphasized that pullbacks after large breakouts are normal. XRP recently retraced roughly 50% of its prior move and is now approaching support near the exponential moving average (EMA).
After retracing 50%, XRP nears EMA support with RSI oversold, hinting at a potential higher low and bullish rebound. Source: CryptoColugo on TradingView
The relative strength index (RSI) on the 1-hour chart has shifted from overbought to oversold, signaling a potential relief for buyers. “The market may retrace slightly more, but conditions are aligning for a possible upward leg. A higher low could soon form, allowing XRP to break the declining trendline,” CryptoColugo said.
In combination, Fibonacci support, EMA, and RSI convergence provide a structured short-term framework. However, traders are reminded that these indicators highlight potential, not certainty.
Final Thoughts
XRP’s consolidation near $2.18 marks a pivotal technical point. Indicators such as TD Sequential signals, Fibonacci retracement support, and the EMA suggest potential for a short-term rebound.
XRP was trading at around 2.15, down 1.78% in the last 24 hours at press time. Source: XRP price via Brave New Coin
Traders should treat upward momentum as conditional, requiring confirmation through candle structure, volume, and a break above descending trendlines. Conversely, a breakdown below $2.00 would weaken the bullish thesis and open focus toward lower liquidity zones around $1.80.
Meanwhile, Ripple’s progress in payments infrastructure and regulatory developments provides a credible foundation for long-term growth. If key support holds, XRP could resume its upward trajectory, but cautious monitoring remains essential in this volatile environment.