2026-01-08 21:47:47

Why XRP Price Is Falling After Rally to $2.40

$XRP The price has turned downward after deviating from the high confluence support zone, confirming a correction phase as the price dropped below key volume levels again.
The pullback of XRP after its rally to the $2.40 region has sparked renewed discussion about whether the upward movement has failed or if this is simply a correction.
From a technical perspective, the deviation observed at recent highs is neither sudden nor unexpected. Instead, it reflects a justified reaction to an important resistance zone defined by volume, Fibonacci levels, and the broader market structure.
The rally to $2.40 brought XRP directly into an area where sellers previously showed interest. Since the price could not hold above this region on the close, the market signaled a weakening of the bullish momentum.
Key Technical Points for XRP Price
XRP was rejected at the 0.618 Fibonacci retracement level, an important technical reversal point.
The deviation coincided with the Point of Control, the highest volume node in the broader range.
A confirmation below the Point of Control shifts focus to the lower part of the value zone and support at $1.79.
The deviation from $2.40 occurred precisely at the 0.618 Fibonacci retracement level, a level often serving as a decision point between continuation and reversal. This Fibonacci level was reinforced by XRP’s trading range Point of Control, creating a high confluence support zone where supply was expected to emerge.
The price reacted sharply from this area, causing a decisive deviation rather than gradual consolidation. Such behavior typically indicates active selling pressure rather than passive profit-taking. The inability to stay above the Point of Control confirms that buyers lacked sufficient confidence for further rally expansion.
Volume behavior adds further clarity to the deviation. While XRP rose to resistance on relatively quiet volume, selling pressure increased during the decline. This imbalance highlights weak demand at higher prices and suggests that the rally was vulnerable once it reached the significant historical participation zone.
After the deviation, XRP has now fallen back below the Point of Control. From a market profile perspective, this is a critical development. Confirmation below the upper boundary of the range often leads to rotational behavior, with the price moving to lower levels to balance supply and demand.
The next key technical level is the lower part of the value zone, representing the lower boundary of fair value within the current range. If this level holds, XRP could stabilize and continue oscillating. However, failure to defend this value zone will increase the likelihood of a deeper correction.
In such a scenario, the $1.79 region will become the next important support zone. This level coincides with previous structural support and is a natural area where buyers may attempt to re-enter. Turning back into this zone would complete the range traversal and reset market conditions after an unsuccessful breakout attempt.
What to Expect in the Near-Term Price Dynamics
As long as XRP remains below the Point of Control and continues to face resistance near $2.40, the probability of further decline remains higher in the short term. Immediate focus will be on whether the price can find support at the lower part of the value zone or if it will deepen below it.
A continuous break below the value zone will open the path for a deeper correction toward $1.79, where demand is expected to increase. Conversely, successful support at the lower level could keep trading within the range, allowing the price to rise after absorbing selling pressure.

XRP3,43%

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Bitcoinworld90

2026-01-08 17:17:30

Why XRP price is falling after $2.40 rally
$XRP price has turned lower after rejecting a high-confluence resistance zone, confirming a corrective phase as price accepts back below key volume levels.
XRP’s pullback following its rally toward the $2.40 region has sparked renewed debate about whether the upside move has failed or whether the decline is simply corrective.
From a technical perspective, the rejection seen at recent highs is neither sudden nor unexpected. Instead, it reflects a calculated response to a major resistance area defined by volume, Fibonacci levels, and broader market structure.
The rally into $2.40 brought XRP directly into a zone where sellers have previously shown interest. As price failed to hold above this region on a closing basis, the market signaled that bullish momentum was weakening.
XRP price key technical points
XRP was rejected at the 0.618 Fibonacci retracement, a key technical reversal level
The rejection aligned with the Point of Control, the highest volume node of the broader range
Acceptance below the Point of Control shifts focus toward the value area low and $1.79 support
The rejection from $2.40 occurred precisely at the 0.618 Fibonacci retracement, a level that frequently acts as a decision point between continuation and reversal. This Fibonacci level was reinforced by the Point of Control of XRP’s trading range, creating a high-confluence resistance zone where supply was expected to emerge.
Price reacted sharply from this area, producing a decisive rejection rather than a gradual consolidation. Such behavior typically indicates active selling pressure rather than passive profit-taking. The inability to maintain acceptance above the Point of Control confirms that buyers lacked the conviction required to extend the rally further.
Volume behaviour adds further clarity to the rejection. While XRP moved higher into resistance on relatively muted volume, selling pressure increased on the move lower. This imbalance highlights weak demand at higher prices and suggests that the rally was vulnerable once it reached a zone of heavy historical participation.
Following the rejection, XRP has now fallen back below the Point of Control. From a market profile perspective, this is a critical development. Acceptance below the upper bound of the range often leads to rotational behaviour, in which price moves to lower levels to rebalance supply and demand.
The next important technical level is the value area low, which represents the lower boundary of fair value within the current range. If this level holds, XRP may stabilize and continue ranging. However, a failure to defend the value area low would increase the probability of a deeper corrective move.
In such a scenario, the $1.79 region becomes the next major downside target. This level aligns with prior structural support and represents a natural area where buyers may attempt to re-enter. A rotation toward this zone would complete a traversal of the range and reset market conditions after the failed breakout attempt.
What to expect in the coming price action
As long as XRP remains below the Point of Control and continues to face resistance near $2.40, downside probing remains the higher-probability outcome in the short term. The immediate focus will be on whether price can find support at the value area low or if acceptance develops below it.
A sustained break below the value area low would open the door for a deeper corrective move toward $1.79, where stronger demand is expected to emerge. Conversely, a successful defense of lower support could keep XRP trading range-bound, allowing price to rotate higher once selling pressure is absorbed.
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