The price of XRP has been on a downward trajectory for nearly three weeks, experiencing a decline exceeding 20%. This raises the question of whether it can recover its recent losses, especially as technical indicators begin to favor bullish momentum. As per data from crypto.news, XRP reached a monthly low of $1.81 earlier today, continuing a downtrend that initiated on January 6, when it was trading around $2.39. This recent plunge has left it approximately 48.4% below its all-time high achieved in July of the previous year.
The decline in XRP coincided with a broader market downturn fueled by geopolitical tensions related to U.S. tariffs and renewed fears surrounding a potential government shutdown. Additionally, delays concerning the U.S. crypto market structure bill and an expected hawkish stance from the Federal Reserve have further weighed on the asset”s performance in recent weeks.
Despite these headwinds, several positive developments could ignite a significant relief rally for XRP in the coming week. Notably, the total market capitalization of stablecoins within the XRP ledger has increased by $100 million this month, now totaling $407 million. An uptick in stablecoin supply on a blockchain often indicates that investors are gearing up to inject capital into the ecosystem.
Moreover, XRP exchange-traded funds (ETFs) have recorded only two outflow days this month, resulting in a cumulative inflow of $67.8 million, even as the broader crypto market remains under pressure from macroeconomic factors. These steady inflow figures suggest that institutional investors continue to view XRP as a long-term holding, undeterred by recent volatility.
Furthermore, a trend of XRP being withdrawn from exchanges has been observed, with data from Coinglass indicating that outflows have consistently outpaced inflows over recent weeks. This trend is significant as it reflects growing confidence among investors.
On the technical analysis front, XRP has confirmed a bullish reversal pattern on its chart, which historically precedes corrective pullbacks. Analyzing the 4-hour chart reveals that XRP has broken out from a descending trendline that has served as resistance since the beginning of 2026. Such breakouts typically indicate that bulls possess enough strength to influence market direction, at least in the short term.
Importantly, the aforementioned descending trendline forms part of a falling wedge pattern, characterized by two converging descending trendlines. The successful breach of the upper trendline suggests a breakout from this bullish reversal formation, granting XRP a significant technical advantage for potential gains.
If bullish momentum continues, XRP might target a rally up to $2.23, as calculated by measuring the wedge”s height and adding it to the breakout point. Should buying pressure persist, it could push XRP back towards its January high of $2.39. However, a failure to maintain support above the psychological level of $1.80 could invalidate this bullish outlook, leaving room for a bearish scenario amidst the current volatile market conditions.
