XRP Price Struggles Below $3 Despite Recovery as Sellers Dominate Rallies

XRP price entered January 2026 showing signs of recovery after a prolonged downtrend in 2025, but the upside remained capped below the critical $3 resistance level. The previous year’s decline reshaped market behavior, as traders increasingly treated rebounds as opportunities to take profit rather than initiate fresh long positions. As a result, XRP price action continues to reflect hesitation and limited follow-through despite periodic bullish attempts.

After losing the $3 mark in 2025, XRP established a pattern where selling pressure consistently emerged near familiar resistance zones. One of the earliest rejections occurred in late October around $2.65, when buyers briefly pushed prices higher before sellers absorbed demand and forced a pullback. This behavior highlighted profit-taking from traders positioned at lower levels, preventing the market structure from shifting bullish.

Similar dynamics played out in early November near $2.52, where buying momentum again faded quickly. Instead of extending positions, market participants reduced exposure, reinforcing the idea that rallies lacked conviction. Toward the end of November, XRP faced another rejection near $2.22, eventually finding temporary stability around the $1.80 demand zone. That area later fueled a recovery toward $2.35, but renewed selling pressure once again capped gains. Notably, this rejection coincided with the first significant spot XRP ETF outflow of over $40 million after more than a month of inflows, signaling renewed caution among investors.

Technically, XRP price remains constrained within a descending channel that has been intact since mid-2025. This structure continues to limit upside expansion, as sellers defend higher levels and prevent sustained breakouts. While XRP has managed to reclaim the $2 level, moves toward $2.35 have aligned with channel resistance, leading to renewed downside rotations.

At current levels near $2.08, holding above $2 is crucial for bulls. A loss of this support could see XRP revisit $1.80, a zone that previously attracted strong demand. However, improving macro conditions, regulatory clarity developments, and broader market tailwinds could encourage buyers to step in on pullbacks. While sellers still control rallies, growing buyer interest at lower levels suggests that downside reactions are increasingly attractive, keeping the possibility of future rebounds alive.