XRP Plunges Toward $1.40 as Jim Rickards and Analysts Warn of Further Decline

As cryptocurrency markets face mounting headwinds, Jim Rickards and other market strategists have turned their attention to XRP, with technical analysts warning of a prolonged downtrend that could push the digital asset significantly lower. Recent analysis from trading professionals suggests XRP is locked in a bearish pattern that threatens to extend losses into late February 2026, with critical support levels being tested. The latest price movements appear to validate these forecasts, offering crucial insights into where the market may be headed.

The Bearish Channel Pattern Driving Lower Prices

XRP has remained confined within a clearly defined descending channel since peaking in mid-July 2025, according to technical analysis published on TradingView. This pattern reflects consistent lower highs and lower lows, a hallmark of sustained downward pressure that continues to guide price expectations. The structure is not merely a temporary pullback but rather signals a fundamental shift in market sentiment favoring sellers over buyers.

The formation of a lower high in early January 2026 marked the beginning of a fresh bearish impulse within the broader downtrend. This development reinforces the notion that near-term recovery attempts are likely to face substantial headwinds. For traders watching XRP’s technical setup, this pattern represents one of the most important bearish signals currently at play.

Moving Averages Signal Extended Downside Pressure

Over recent weeks, XRP has struggled repeatedly to reclaim key moving averages, a failure that underscores the strength of the underlying downtrend. The 200-day moving average, which typically serves as a major trend filter for longer-term price direction, has rejected XRP multiple times. Each rejection near this critical level has reinforced bearish momentum rather than suggesting a reversal, keeping sellers firmly in control.

The 100-week moving average, while providing some support during prior declines, faces significant risk of breakdown. Historical patterns reveal that when this longer-term support level gives way, XRP tends to experience accelerated selling pressure and rapid losses. Previous downward moves within the same channel have produced declines exceeding 40%, a metric that aligns with a potential drop toward the $1.40–$1.45 zone.

Current technical readings show the 50-day simple moving average near $2.00 acting as immediate resistance, while the 200-day SMA around $2.50 underscores how deeply negative the longer-term trend has become. This layered resistance structure suggests that any bounce attempts may face substantial headwinds before reaching higher levels.

Momentum Indicators Suggest Room for Downside

The 14-day Relative Strength Index (RSI) currently stands around 44, placing XRP in neutral territory rather than deeply oversold conditions. This balanced momentum reading indicates that while bearish pressure is present, it has not yet reached an extreme level. The positioning leaves room for either a modest recovery or further downside movement, with the technical setup ultimately favoring continuation of the existing trend.

Current Price Action Validates Bearish Forecast

By February 7, 2026, XRP was trading at $1.46, having recovered 14.15% over the past 24 hours but remaining down more than 16% over the week. This price action places the asset dangerously close to the $1.40 target that analysts had projected for late February, suggesting the bearish thesis is playing out as anticipated. The proximity to predicted support levels demonstrates the analytical accuracy of the descending channel model and provides credibility to further downside warnings.

The current trading range represents a critical juncture where either a genuine reversal could emerge or confirmation of further weakness might follow. Market participants, including strategists like Jim Rickards who have highlighted macro risks in the broader financial system, suggest monitoring how XRP behaves at these pivotal levels with heightened attention.

Key Takeaway for Traders

The convergence of technical factors—the descending channel, repeated moving average rejections, and proximity to the projected $1.40 target—creates a compelling bearish case for XRP in the near to medium term. While the neutral RSI reading leaves room for tactical bounces, the overall structure remains oriented toward lower prices. Those tracking XRP should monitor support levels closely, as a breakdown from the current zone could accelerate declines toward the broader target zone.