This is the reason why XRP price’s 2026 downtrend is not ending anytime soon.
XRP price has experienced a sideways period in the past month, consolidating between key levels. This range-bound movement indicates that the altcoin has been struggling to break free from the pressure that created the current consolidation.
Considering the ongoing market situation, XRP may experience further decline before any recovery.
XRP is facing a lot of pressure
The MVRV Extreme Ratio, which measures the relationship between market value and real value, indicates that XRP is undervalued and under pressure. Currently, MVRV is below 1.0 on approximately 15% of trading days, indicating a lack of positive momentum.
Historically, this measure has led to short-term recoveries or worsened the situation, leading XRP to new lows. Based on current trends, XRP may experience the latter, if downward pressure continues.
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In this context, the low MVRV ratio suggests that investors are hesitant to push the price higher, and the market sentiment around XRP is weak. Unless a significant trigger occurs, the lows reflected in this metric may continue to support XRP's price in the near term.
XRP is experiencing a macro momentum shift as the overall market sentiment is turning bearish. The change in the net position of the exchange indicates an increase in selling pressure, with a decrease in buying speed.
As exchanges begin to record more inflows than outflows, a shift from buying to selling could signal an imminent collapse for XRP. This volatility change could put additional pressure on the altcoin, as it struggles to maintain its upward momentum.
As buying slows and selling increases, XRP could see more of a price slide. This change in macro momentum will accentuate the current market volatility, contributing to XRP's long-term decline in the coming months.
XRP price may struggle to recover.
At the time of writing, XRP is held at $1.35, in the range between $1.34 and $1.47. The bearish trend that has continued since the beginning of the year remains unchanged, with the cryptocurrency struggling to break out of the range. This resistance at $1.47 proved difficult to overcome and was tested several times at the $1.34 support.
Given the current market conditions and the pressure expressed by the MVRV ratio and macro momentum, XRP faces a bearish outlook in the short term. The price may break through the $1.34 support level, potentially going down to $1.21. This indicates a deeper decline and extends the ongoing downtrend, increasing the pressure on the altcoin.
However, if XRP holders can find support from investors and the buying continues, the altcoin may break through the $1.47 resistance level. A move above this level could move XRP to $1.58, which would undermine the outlook and indicate the possibility of a reversal. If XRP can continue its upward momentum, it may eventually target $1.70, indicating a complete change in market sentiment.
