The price of XRP has fallen this week, falling about 4.5% and trading below $1.40 as macroeconomic pressures and unresolved regulatory issues weigh on the digital asset.

Related reading: Bitcoin Giant Awakens: 2043 BTC Moved After 7-Year Sleep

Market data from major price aggregators shows XRP’s market capitalization at around $85 billion, with continued volatility in broader cryptocurrency markets. Despite this downturn, some analysts are highlighting technical patterns and potential policy changes that could set the stage for a significant market move.

XRP's price trends to the downside on the daily chart. Source: XRPUSD on Tradingview

XRP price action and technical signals

From a technical perspective, cryptocurrency analysts take note of this XRP recently returned to the lower boundary of the long-term price channel on the weekly charts, a level that has preceded upward trends in the past.

According to chart interpretation, the XRP price tends to rebound strongly when touching this support zone, with similar patterns seen in early 2017, behind schedule 2024, and early 2026. These lows have often led to long-term gains, suggesting investors may want to keep a close eye on the current zone as a potential entry point.

Short-term price indicators reflect continued pressure. XRP is trading below key moving averages and immediate support levels, with few powerful upside catalysts currently noticeable.

Institutional interest in the spot XRP ETFs has cooled compared to the early phases of their introduction, and derivatives markets show that investors are exiting positions, with the negatively weighted funding rate signaling short-term bearish sentiment.

Regulatory uncertainty and macro difficulties

Regulatory ambiguity remains a significant factor affecting XRP’s performance. Discussions in Washington on crypto policy, particularly around stablecoins and digital asset oversight, have provided no clear guidance, leaving investors wary.

Investor commentary has increased, and some market data suggests XRP may benefit from broader regulatory changes. Famous investor Marek Jusko noted potential changes to digital asset regulations that could restrict access to private stablecoins and elevate alternative assets such as XRP for payments and reserves.

While details about the timeline and structure remain unclear, the idea of ​​upcoming rule changes has sparked debate within the crypto community.

What analysts are watching

Despite the bearish drift, many analysts are closely watching structural signals. Technical patterns that have signaled rebounds in the past could indicate future strength if broader market sentiment stabilizes.

Some investors see the current price level as key to positioning for a possible breakout if regulatory clarity or macro conditions improve.

Related reading: BlockTower’s Ari Paul: Bitcoin may never reach another record high

Overall, XRP’s near-term prospects are mixed. Current price behavior reflects ongoing market uncertainty, but technical patterns and potential policy developments leave the door open to a broader move if external conditions change.

Cover image from ChatGPT, XRPUSD chart on Tradingview