In recent times, $XRP has approached a critical point where it initially broke free from a downward channel back in August 2026. The ongoing pullback will be pivotal in determining if that earlier breakout remains intact and whether the past resistance level can now serve as support.
Formation of the Descending Channel for $XRP
The descending channel began establishing itself after $XRP experienced a drop from its all-time high of $3.66 in July 2025. Following this, the cryptocurrency struggled to regain its footing and repeatedly posted lower peaks.
The sequence of these peaks contributed to the formation of the upper trendline of the channel, which consistently hindered $XRP‘s recoveries.
In October 2025, $XRP attempted to break through the channel but encountered resistance at $3.05, a price point in line with the upper trendline.
Another effort to surpass the channel occurred during a rebound in January 2026, but the price was once again constrained at $2.41, where it hit the trendline.
Ultimately, $XRP succeeded in breaking above the channel during the August 2026 surge, surpassing the upper trendline at $1.3870. The price subsequently surged to $1.70 but encountered a barrier before reversing course. This reversal prompted a pullback as $XRP retraced towards the breakout point.
Testing the Channel Breakout Once More
By September 2026, corrections had pushed $XRP down to $1.25, bringing it back to the previously noted upper trendline. Thanks to the breakout in August, this trendline had transitioned from a resistance line to a support level, and $XRP managed to remain above it. Subsequently, the price bounced back, reaching a peak of $1.65 by the end of September.
Nevertheless, the recent downward movement has again pressured $XRP, likely leading to a further examination of the channel breakout. The cryptocurrency seems poised for another encounter with the upper trendline, and its behavior at this point could be essential in determining whether the current decline comes to a halt or continues.
The upper trendline stands at $1.1917. Should $XRP retreat to this mark and maintain its position above it, this could signal a potential bottom and an end to the present downtrend. After this, $XRP might see an immediate recovery or trade sideways for a while before attempting to regain its previous losses.
A Dip Below $1.1917 May Lead to Increased Losses
Conversely, $XRP could experience a significant decline if it falls under the $1.1917 threshold. A breach of this support would undermine the recovery scenario stemming from the August breakout, possibly exposing the cryptocurrency to intensified selling pressure.
If $XRP drops below $1.1917, the next key support level lies near the lows of $0.98 established in August 2026. Buyers may attempt to intervene at this point to stem the decline.
However, should $XRP also dip below $0.98, the lower Bollinger Band at $0.8941 could serve as the next support zone. Currently, $XRP trades at $1.3077, placing it roughly 9% above the $1.1917 trendline.