XRP has reached a critical crossroads. In late December, the price has been consolidating around 1.88 for a long time, which is a longstanding support level. It has previously rebounded at this level in April, June, and October 2025. Bulls are pinning their hopes on this line, hoping to hold it again and build a long-term double bottom pattern.

But the reality is not so optimistic. A bearish "double shoulder top" pattern has appeared on the weekly chart. Since falling from the July high, bears have maintained control. Market sentiment is clearly leaning towards the bearish side, and the battle between bulls and bears has become intense.

What does technical analysis say? Bulls need to first break through the psychological barrier at 2.00, then have a chance to test the strong resistance zone between 2.68 and 2.80. Only then can the short-term downtrend be reversed. Conversely, if bears manage to break below the daily support at 1.77, the price could accelerate downward to the 1.50-1.60 range.

The most painful pressure comes from the Federal Reserve's liquidity expectations—markets generally expect continued tightening. Coupled with the strong correlation between XRP and Bitcoin, any market turbulence can cause capital to flee immediately. The recent weak performance of the price is very evident.

Some analysts believe that the current position offers good value, and suggest that those with no open positions can consider small-scale allocations to prepare for a potential reversal (remember, no more than 10% of total funds). But the key is whether the price can hold the 1.77-1.88 range in the short term—holding it offers a chance for a rebound, while breaking below requires caution against accelerated decline.

The trading strategy is straightforward: look for buying opportunities in the 1.8700-1.8500 range, with the first target at 1.8910. After stabilizing, aim for 1.9160. Be sure to strictly control position sizes, set stop-losses, and avoid reckless gambling.