XRP is trading at $2.05, down roughly 15% from its 2026 high. Two bearish chart patterns on the weekly timeframe — a double-top and a dragonfly doji — are flashing warning signs. If the downtrend continues, the next targets are $1.7712 and then the neckline at $1.6140, implying a potential 22% drop from current levels.
Double-Top and Dragonfly Doji Converge
The weekly chart shows XRP twice rejected near $3.4045, forming a classic double-top, with the neckline at $1.6140. Last week's candle printed a dragonfly doji — a tiny body with a long upper shadow — often interpreted as a bearish reversal signal. The combination of both patterns heightens the risk of further downside.
XRP has already slipped below the 50-week and 100-week exponential moving averages, and is trading under the Supertrend indicator. A break below the December low of $1.7712 likely opens the door to the neckline at $1.6140.
Inflows and Open Interest Cool Off
Demand indicators are also weakening. According to SoSoValue, spot XRP ETFs recorded just $107 million in net inflows this month, sharply down from December's $500 million and November's $666 million. Meanwhile, futures open interest has dropped from $4.5 billion on January 6 to $3.9 billion, suggesting leveraged capital is pulling back.
Regulatory Turmoil Adds Pressure
The price decline comes amid policy uncertainty. The U.S. Senate Banking Committee withdrew the Market Structure Bill after objections from Coinbase. Ripple Labs supported the bill, with CEO Brad Garlinghouse stating, "Having a bill is better than having none, and it brings more good things to the crypto industry." The market continues to digest the shifting Washington landscape.