XRP traders are entering a decisive phase as recent price action, technical levels, and external events converge, creating potential volatility for the token. With markets already navigating regulatory uncertainty and broader macroeconomic pressures, XRP’s short-term movements could dictate whether bullish momentum continues or a correction emerges.
Zach Rector shared a critical warning in a video posted on X, emphasizing the importance of near-term technical levels. Rector noted that “XRP is respecting these fib levels very well. It went up to $2.17 this morning, and I’m expecting it to bounce or reject off this 0.236 fib, which is sitting at $2.27.”
He added that there remains a possibility for the token to extend upward, forming a double top around $2.40, before any pullback occurs. Rector framed this scenario as a likely short-term reaction, stating, “We’re probably going to roll back over and have a correction.”
Critical XRP Warning! pic.twitter.com/M2QlVKNZcm
— Zach Rector (@ZachRector7) January 14, 2026
Technical Signals and Fibonacci Levels
Rector’s analysis highlights the critical role Fibonacci retracements play in predicting XRP’s near-term price action. The 0.236 and other key levels serve as pivot points where the token often faces resistance or support.
According to Rector, monitoring these levels can help traders anticipate whether XRP will continue its upward momentum or experience a pullback. He explained, “I’m sharing this publicly so that our XRP family is aware of this move that I’m expecting,” emphasizing the importance of informed decision-making.
Regulatory Factors Influencing Price
Beyond technical signals, Rector highlighted political and regulatory catalysts that could impact XRP. He referenced delays in the Clarity Act and upcoming markup votes in Washington, D.C., as potential sources of short-term market volatility.
“Probably because of the delay in the Clarity Act, markup votes taking place tomorrow, other drama in DC,” Rector noted, suggesting these events could temporarily stall XRP’s upward trajectory despite strong technical setups.
Trader Positioning and Strategy
Rector also shared his own positioning strategy, including a buy order at $1.66, illustrating a measured approach to market swings. By combining technical analysis with macro-level awareness, he aims to balance risk and opportunity while preparing for both potential rebounds and corrections.
Outlook for XRP
As XRP approaches key levels around $2.27 and the potential double top at $2.40, traders must carefully monitor market reactions. Rector’s warning underscores that short-term price action will depend on both technical behavior and external regulatory developments.
His insights serve as a timely reminder that disciplined observation, coupled with awareness of political and market catalysts, is crucial for navigating XRP’s next moves.