Here are New XRP Bullish and Bearish Price Scenarios as XRP Slips into Descending Channel

A market analyst has presented the bullish and bearish case scenarios for XRP from here, as the token enters a multi-month descending channel structure.

XRP and the broader crypto market experienced intense bearish pressure in the last quarter of 2025, incurring massive losses that led to the first annual bearish candlestick since 2022. Specifically, after reaching a $3.1 high in early October, XRP collapsed, losing the $3 and $2 psychological levels and eventually closing the year at $1.84, an 11.51% yearly drop.

XRP Trading Within Descending Channel

However, bullish momentum seems to be returning in the new year, 2025, with XRP recently recovering above the $2 region for the first time in three weeks. Amid this renewed bullish spell, market analyst Chart Nerd has presented what he believes could be XRPs bullish and bearish case scenarios from the current position.

In his latest analysis, the market watcher reminded investors that XRP faced a strong rejection at the $2.7 to $2.75 region, which resulted in the latest price collapse. For context, this rejection occurred in late October after XRP attempted to recover from the Oct. 10 market crash. The price soared to around $2.7 on Oct. 27, but the resistance at this mark resulted in the sustained losses throughout Q4 2025.

According to Chart Nerd, the $2.7 to $2.75 area flipped from support to resistance, with XRPs Q4 2025 downtrend pushing the crypto asset into a descending channel. Notably, as is consistent with descending channels, XRP continued to print lower highs as the price crashed in Q4 2025, confirming the downtrend.

However, with the recent recovery in 2026, data from the market analysts 1-day chart confirms that the short-term trend has flipped, with XRP now seeing higher lows after retesting the support at the descending channel bottom, which currently lies around $1.6 to $1.77. Chart Nerd stressed that momentum may now be compressing, which could lead to a volatility surge.

XRP 1D Chart | Chart Nerd

XRP Bullish and Bearish Case Scenarios

At press time, XRP has recovered 10.77% within the first three days of 2026, but it remains inside the descending channel. The market analyst then presented bullish and bearish case scenarios for XRP from this position.

According to him, in the bullish scenario, XRP would maintain the current upward momentum and then breach the resistance at the upper trendline of the descending channel, which currently sits around $2.1. At press time, XRP changes hands at $2.03. From here, XRP could then push toward reclaiming the previous resistance around $2.7 to $2.75. Chart Nerd believes XRPs macro structure would change to bullish once it recovers this area.

However, for the bearish case, XRP could fail to break above the upper trendline resistance of the descending channel. If this happens, the price could correct further into the lower ends of the support, around $1.6. The last time XRP saw this price mark was in April 2025. Meanwhile, regardless of the scenario that unfolds, whether bullish or bearish, Chart Nerd insists that XRP is building momentum.