Ripple's native cross-border token, XRP, is currently trading near crucial levels after experiencing a retreat from the $2.13 zone. While price action has moderated, momentum indicators are beginning to suggest a potential shift in market sentiment.
Momentum Indicators Signal Potential Turnaround
On the 4-hour chart, XRP continues to navigate within a descending channel. The token is currently holding its position within this structure, with buyers showing a positive response near the lower boundary. The $2.00 area, identified as a liquidity pocket, remains a focal point for traders. According to ChartNerd, the price action is respecting the channel's support and resistance levels.
Price action is respecting the channel support and resistance.
The MACD histogram is exhibiting early signs of slowing bearish momentum, with the bars decreasing in size, which can indicate a potential shift. Concurrently, the Stochastic RSI has already completed a crossover within the oversold zone, a pattern that often precedes local reversals. ChartNerd further noted that XRP might remain within the channel until the $2.00 level is tested, after which a breakout or breakdown is likely to occur.
As of this reporting, XRP is priced at $2.06, marking a decrease of over 2% in the last 24 hours and a 2% loss over the past week. Traders took profits near the $2.13 mark, capitalizing on gains from the recent rally originating from the $1.80 level. XRP is presently consolidating near its support.
In a broader analysis, EGRAG CRYPTO has provided a long-term perspective utilizing Elliott Wave theory. Their chart suggests that XRP has concluded Waves (1) through (3) and is currently in a Wave (4) correction. If this structure remains intact, a Wave (5) is anticipated to follow, which is typically characterized by expanding momentum.
The chart also highlights recurring patterns observed in previous cycles, where the asset has pulled back into rising support zones before establishing higher lows. These specific points, indicated by white and green circles, have consistently followed a discernible pattern. EGRAG CRYPTO commented, "That behavior is not weakness, it’s structure repeating," and pointed to a potential target range between $15 and $22.
#XRP – The Chart Is Screaming, People Aren’t Listening ($20):
— EGRAG CRYPTO (@egragcrypto) January 16, 2026
💡Focus on the white ⚪ & green 🟢 circles on the chart. That behavior is not weakness, it’s structure repeating.
🏳What’s happening there:
▫Price pulls back into rising support (21 EMA zone)
▫Momentum cools… pic.twitter.com/s1ldjuDNKH
Exchange Flows and ETF Inflows Bolster Demand
There has been a notable increase in XRP outflows from Upbit. CW8900 observed a correlation between these outflows and subsequent price increases for XRP.
When XRP outflows from Upbit occurred, the price of XRP rose.
Similar trends were observed in late 2024, with exchange-held XRP reserves declining to below 2 billion tokens, a significant drop from over 4 billion tokens held late last year. This reduction in available supply on exchanges suggests diminished sell-side pressure.
Institutional interest in XRP remains robust. Data from SoSoValue indicates that spot XRP Exchange-Traded Funds (ETFs) have collectively attracted $1.27 billion in inflows. Even on a day when the broader cryptocurrency market experienced a decline of $47 billion, XRP ETFs managed to record net inflows of $17 million.