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Analyst Zach Rector has warned that XRP is approaching major resistance levels that could either support a brief move higher or trigger a near-term correction.
Rector framed his commentary as a “critical warning” for short-term traders navigating XRP’s current price zone. While noting that XRP could still extend its rally toward $2.40, he argued that a rejection at nearby resistance could spark a pullback.
His analysis comes as U.S. crypto legislation faces delays. He urges traders to watch both price signals and policy developments as XRP’s price nears a key move.
Key Takeaways
- Rector alerts the XRP community to potential short-term price risks.
- The analysis focuses on XRP’s reaction to Fibonacci levels, with the 0.236 FIB acting as a critical decision point.
- XRP could still climb toward the $2.40 region, where a potential double-top formation may emerge.
- Regulatory and political developments may act as catalysts for increased volatility.
XRP Approaching Key Fibonacci Levels
In a tweet, Rector explained that XRP has closely respected Fibonacci levels during its recent advance. He noted that the token climbed to about $2.17 on January 14, bringing it closer to an important decision zone.
Rector pointed to the 0.236 Fibonacci level near $2.27 as the next key area, where XRP could either face rejection or briefly move higher before selling pressure increases.
According to him, a rejection at this level would signal weakening momentum, while a move toward $2.40 could mark a final push higher. Rector also warned that $2.40 could form a double top —a bearish pattern that occurs when prices fail to break a resistance level twice.
For context, after XRP surged to $2.40 on January 6, the token declined sharply and eventually fell to near $2.00.
Since then, XRP has rebounded above $2.10 and is currently trading around $2.11, slightly below the previous day’s peak. If the price revisits the $2.40 region and stalls, it could strengthen the case for a short-term correction.
Regulatory Uncertainty Adds to Volatility Risk
Beyond technical factors, Rector highlighted political and regulatory uncertainty in the United States as a key source of potential volatility. He specifically referenced delays related to the CLARITY Act, upcoming markup votes, and political developments in Washington, D.C., which could weigh on sentiment and prompt profit-taking.
Notably, the U.S. Senate Banking Committee has canceled the markup of the CLARITY Act, initially scheduled for today, after Coinbase publicly withdrew its support for the bill.
XRP Historical Reaction to Delayed Regulation
Historically, XRP has been highly sensitive to regulatory news. Periods of optimism around legal clarity have often fueled strong rallies, while delays or ambiguity have triggered volatility or consolidation.
For example, XRP surged to $3.34 in January 2025 as investors anticipated a swift resolution to Ripple’s long-running legal battle. However, following delays in that resolution and broader macroeconomic pressures, the price fell below $2.00.
Later, in July 2025, XRP rebounded to $3.65 after signs emerged that a resolution was approaching. This reinforces the asset’s strong correlation with regulatory developments.
At press time, XRP is trading at $2.11, down 1.52% over the past 24 hours.