XRP is approaching another important technical test following its powerful August recovery. After rallying from around $1.00 to above $1.50, XRP has entered a pullback, with the latest decline putting a support region around $1.34 to $1.36 in focus.
Crypto analyst Diana, known as InvestWithD, believes the reaction around this area could determine what happens next. Her bullish scenario ultimately puts $2.60 on the map, but several things need to happen before XRP can realistically challenge that target.
At the same time, there is some encouraging news away from the chart. U.S. spot XRP ETFs reportedly recorded $23.87 million in net inflows on August 25, their strongest daily result since May 11. That provides an interesting backdrop as traders wait to see whether buyers defend XRP’s latest pullback.
What you'll learn 👉
XRP’s $1.34 Support Could Decide the Next Move
Diana’s four-hour XRP/USDT chart shows what is essentially a post-breakout correction following the recent rally.
XRP initially surged from roughly $1.00-$1.10 to a local high near $1.55. However, the advance eventually cooled, and the token failed to maintain the $1.46 support level that Diana had previously identified.
With XRP falling toward $1.38 at the time of her analysis, she turned her attention to the $1.34-$1.36 region.
“$1.46 support failed, and XRP has now dropped to roughly $1.38, putting the $1.34-$1.36 zone directly in play,” she explained.
The chart supports the idea that this is an important area. Several horizontal levels cluster around $1.35, while the broader rising trend structure from XRP’s August bottom has not yet been completely broken.
However, the shorter-term picture has weakened. The moving averages that turned higher during the initial rally have begun rolling over as the correction develops.
This means bulls have work to do.
🚨 $XRP LOST $1.46 AS EXPECTED — NOW $1.34 IS THE CRITICAL BOUNCE ZONE BEFORE A POTENTIAL RUN TOWARD $2.60 😳🔥📈
— Diana (@InvestWithD) August 26, 2026
The $1.46 support failed, and XRP has now dropped to roughly $1.38, putting the $1.34–$1.36 zone directly in play.
👉 4H RSI has collapsed from 80+ to ~43. The… https://t.co/PgKKty8wDL pic.twitter.com/xfQNEqFghh
Diana’s projected path first takes XRP into approximately $1.34-$1.36, where she expects buyers could attempt to establish a higher low. If that happens, XRP would then need to recover $1.46.
A move back above $1.46 would be the first meaningful indication that the correction is ending. The more important breakout, however, would come at $1.70.
According to Diana, clearing that level could open a much larger path toward $2.00, $2.40 and eventually $2.60.
It is important to emphasize that $2.60 is not her immediate target from current levels. It is the upper end of a conditional roadmap that depends first on support holding and then on XRP breaking multiple resistance levels.
Read also: XRP Price Could Be Entering a Much Bigger Momentum Phase, Analyst Says
RSI Has Reset After XRP’s Rally
One of the more interesting parts of Diana’s analysis is the four-hour Relative Strength Index.
During XRP’s initial surge, RSI climbed above 80, putting the token deep into overbought territory. Since then, the indicator has fallen to roughly 42-43.
That is a substantial reset.
Price corrections following such strong advances are not unusual, and an RSI decline into the 40s means much of the short-term overheated condition has been removed. If buyers return around support, XRP would have considerably more room for another advance before RSI approaches extreme readings again.
Still, a lower RSI is not itself a buy signal. Price needs to confirm that buyers are actually returning.
That is why Diana’s $1.34-$1.36 region matters more than the RSI reading alone.
If that support holds and XRP quickly recovers $1.46, the current decline could ultimately look like a normal reset following the August rally.
If $1.34 fails, however, the setup changes. Diana identifies approximately $1.29-$1.30 as the next major support area, with additional levels around $1.20 and $1.17 visible on the chart.
In other words, the bullish structure remains possible, but it has not been confirmed.
XRP ETFs Record Their Best Day Since May
There is also a potentially supportive development on the institutional side of the market.
Spot XRP ETFs recorded approximately $23.87 million in net inflows on August 25, according to data shared on X. That was reportedly their strongest session since May 11, when the products attracted around $25.8 million.
More importantly, the latest inflow was not an isolated day.
Spot $XRP ETFs just saw their best day since May11…
— BSCN (@BSCNews) August 26, 2026
Spot @Ripple ETFs clocked +$23.87M in net inflows on August 25 – The best day the products have seen since May 11 with +$25.8M.
The ETFs have absorbed +$77M in the last six trading days and now hold more than 1.6% of $XRP's… pic.twitter.com/aZP4DaAVpJ
The products have reportedly absorbed around $77 million over the past six trading sessions, while their combined holdings have grown to more than 1.6% of XRP’s supply.
That is significant because sustained ETF inflows represent spot demand occurring while XRP itself is correcting.
If those inflows continue, ETFs could absorb some available XRP supply at a time when traders are debating whether the latest decline is simply a pullback or the beginning of a larger correction.
However, ETF demand should not be treated as proof that XRP will immediately rebound. $23.87 million is meaningful for XRP products, but technical conditions and the direction of the wider crypto market can still dominate short-term price action.
What Comes Next for XRP Price?
For now, the technical roadmap is relatively straightforward.
The first battle is around $1.34-$1.36. Holding that region would preserve Diana’s immediate rebound scenario, while reclaiming $1.46 would provide stronger evidence that buyers are returning.
After that, $1.70 becomes the major test.
A convincing break above $1.70 would make the higher targets at $2.00, $2.40 and $2.60 considerably more relevant. Conversely, losing $1.34 would shift attention toward $1.30-$1.29 and potentially deeper support.
So while $2.60 makes for an eye-catching target, XRP’s immediate battle is happening much closer to $1.34.
The combination of a reset in four-hour RSI and stronger ETF inflows gives bulls some encouraging signals. But the XRP price chart still needs to confirm them. Until XRP successfully defends support and begins reclaiming lost resistance, the $2.60 scenario remains only a bullish roadmap.
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