XRP Faces Critical Test At $1.14 Amid Technical Correction Phase

XRP’s Recent Struggle and The Path Forward

XRP entered 2026 with momentum, surging approximately 22% to reach $2.41, but recent price action has turned turbulent. The token currently trades near $1.98, down 3.79% over the last 24 hours, with a market cap of $120.36B. This pullback has sparked debate about whether this marks a temporary consolidation or a deeper structural shift in sentiment.

Technical Structure Breakdown: Understanding The Current Setup

Renowned analyst CoinsKid has outlined a detailed technical scenario following XRP’s failure to sustain its breakout attempt. The critical turning point came when XRP lost the $1.90 support level, triggering what CoinsKid characterizes as a significant breakdown in market structure. This decline has set off a descending triangle pattern—a formation known to test emotional conviction among traders before launching sustained rallies.

The analyst suggests XRP is currently navigating a macro ABC correction cycle, with the C-wave extension still unfolding. Importantly, bullish divergence signals in Bitcoin have not yet materialized, indicating the broader correction phase may extend further before a reversal takes hold.

The $1.14 Accumulation Target: Historical Precedent Matters

Based on Fibonacci analysis and historical price action, CoinsKid identifies $1.14 as a pivotal bid zone where institutional and long-term accumulators have historically entered positions. This level carries significance because it aligns with previous accumulation ranges that preceded major rallies.

XRP’s track record demonstrates consistent respect for similar support zones during past corrections. Notable examples include bounces from $0.29, $0.38, and $1.64—each followed by substantial impulsive advances. These historical patterns suggest that reaching $1.14 could represent an opportunity rather than a catastrophe, provided the broader technical framework remains intact.

Why The Long-Term Thesis Remains Constructive

Despite near-term pressure, CoinsKid maintains an optimistic long-term outlook anchored on $27 as a meaningful price target. This projection assumes XRP successfully completes its correction phase and begins an impulsive new leg higher, potentially unlocking double-digit valuations.

A key catalyst supporting this thesis is the ongoing institutional participation in spot XRP ETF products. The XRP ETF has recorded total inflows of $1.49 billion, reflecting genuine demand from institutional investors entering the space. This capital influx signals that professional money is positioning defensively during corrections rather than abandoning conviction.

Consolidation Before Acceleration

The descending triangle pattern unfolding in XRP serves a practical function—it tests the psychological commitment of weaker market participants who may lack conviction. Historically, such consolidation structures precede the most explosive rallies, as capitulation clears out momentum traders and allows genuine institutional buying to accumulate at depressed levels.

CoinsKid’s framework suggests that once this correction concludes and XRP holds its critical long-term support threshold, the stage should set for the next impulsive phase to commence, potentially targeting the outlined $27 level and beyond.