Will XRP bounce back before Brad Garlinghouse speaks in Davos?
XRP has come under intense selling pressure, sliding sharply on Monday to around $1.85. That marks its weakest level since the start of the year and leaves the token down roughly 23% from its 2026 high near $2.40. The correction has erased a large chunk of early-year gains and put bulls on the defensive just as a major fundamental catalyst approaches: Brad Garlinghouse’s appearance at the World Economic Forum in Davos.
XRP follows broad risk-off move
The latest XRP decline did not happen in isolation. Ripple’s token dropped in tandem with the wider crypto market, echoing steep pullbacks in Bitcoin, Ethereum, Solana, and Dogecoin. This synchronized move suggests macro forces rather than project-specific news were in the driver’s seat.
Traditional markets told a similar story. US equity index futures retreated across the board, with Dow Jones, Nasdaq 100, and S&P 500 contracts losing about 0.70%, 1.40%, and 1%, respectively. Major European benchmarks such as the DAX and CAC 40 also moved lower, while gold pushed higher as traders shifted capital toward perceived safe-haven assets.
The risk-off tone intensified after Donald Trump floated the idea of fresh tariffs targeting some NATO allies, stoking fears of renewed trade frictions and slower global growth. For speculative assets like cryptocurrencies, that type of macro uncertainty often translates into fast, correlated selling.
Davos puts the spotlight on Ripple and tokenization
Against this uneasy market backdrop, Ripple’s CEO Brad Garlinghouse is set to take part in a high-profile panel at the World Economic Forum in Davos, Switzerland. The discussion centers on the future of tokenization, a field that has grown from a niche concept into one of the most closely watched themes in finance and blockchain.
Garlinghouse will sit alongside influential figures including Bill Winters, CEO of Standard Chartered; Brian Armstrong, head of Coinbase; Valerie Urbain, CEO of Euroclear; and François Villeroy de Galhau, governor of the French central bank. The composition of the panel underscores how far tokenization has come—from experimental projects to a topic debated by major banks, regulators, and infrastructure providers.
For XRP investors, the key question is whether Garlinghouse will provide fresh clarity on how Ripple and the XRP Ledger intend to capture a meaningful share of this emerging market.
XRP Ledger’s growing tokenization footprint
Recent figures illustrate that XRP Ledger is already a serious player in the tokenization arena. Data on real-world asset (RWA) activity indicates that over $396 million worth of tokenized assets currently reside on the XRPL, alongside around $387 million in stablecoin assets.
On-chain usage is not static either. Over the last 30 days, RWA transfer volume on the XRP Ledger has climbed by 17% to roughly $76 million. Stablecoin transfer volume in the same period has exceeded $780 million, highlighting active usage for payments, liquidity management, and settlement.
These numbers, while still modest when measured against the entire crypto ecosystem, show that XRP Ledger is more than just a remittance or speculative trading token; it is increasingly positioned as core infrastructure for tokenized assets and stablecoin flows. Any messaging from Garlinghouse in Davos that underlines new partnerships, institutional pilots, or technological upgrades for tokenization could influence sentiment around XRP.
Regulatory backdrop: the CLARITY Act and US policy
Garlinghouse is also expected to address the regulatory landscape, particularly in the United States. One focal point is the fate of the CLARITY Act, a proposed legislative framework that has stalled in the Senate Banking Committee following the withdrawal of support from Coinbase.
The impasse reflects broader uncertainty about how US regulators classify and oversee digital assets, an issue that directly affects Ripple’s operating environment and institutions considering XRP-based products. Clearer rules could unlock new adoption pathways for XRP within banks, payment providers, and capital markets. Prolonged ambiguity, by contrast, keeps a lid on institutional risk appetite.
Any comments hinting at renewed legislative momentum, improved dialogue with regulators, or progress in other jurisdictions could become short-term catalysts for XRP’s price, as traders attempt to front-run potential regulatory breakthroughs.
Macro catalysts: tariffs and inflation expectations
Beyond Davos, the macro calendar offers another potential trigger for crypto prices: an upcoming Supreme Court ruling on Trump-era tariffs, expected on Tuesday. A decision that effectively dismantles or rolls back these tariffs could be interpreted as disinflationary, since lower import duties tend to reduce costs for businesses and consumers.
Lower inflation expectations, in turn, can influence interest-rate projections and risk appetite. If markets start pricing a more benign inflation path, risk assets—including cryptocurrencies—could benefit. In that scenario, XRP might find additional support from macro tailwinds on top of any project-specific news from Davos.
On the other hand, if tariffs remain in place or uncertainty persists, the risk-on narrative could falter, limiting the scope of any XRP rebound in the near term.
Technical picture: bears in control, but signs of exhaustion
From a technical standpoint, XRP’s daily chart points to a market that has been under sustained selling pressure, yet may be approaching a potential inflection point.
After staging a recovery that peaked at about $2.40 on January 6, XRP reversed lower and has since been locked in a clear downtrend. The price currently trades below the 50-day moving average, indicating that intermediate-term momentum remains bearish. The Supertrend indicator also sits above price, reinforcing the notion that sellers have dominated recent sessions.
Crucially, XRP has now dropped to the lowest band of the Murrey Math Lines, often viewed by technical traders as “ultimate support.” This zone is where overextended moves sometimes pause or reverse as bears run low on fresh selling pressure.
Adding to the potential for a reversal, the latest daily candle has taken the shape of a hammer—a pattern commonly associated with bullish reversals when it appears after a decline. The long lower wick suggests that sellers pushed the price down aggressively, only for buyers to step in and force a strong intraday recovery.
Can Garlinghouse’s Davos appearance trigger a rebound?
Given these conditions, the setup for XRP is finely balanced. On one side, the token is technically oversold, sitting at a historically strong support area with a visible hammer candle suggesting that dip-buyers are active. On the other, macro uncertainty and lingering regulatory questions still weigh on the broader market.
If Garlinghouse delivers a confident, forward-looking message in Davos—particularly one that highlights concrete tokenization deployments, institutional collaborations, or regulatory progress—traders may interpret that as confirmation that the fundamental story for XRP remains intact. That could provide the narrative spark needed for a relief rally.
In such a scenario, a plausible first upside target would be the resistance band near $2.25. A reclaim of that zone would also start to chip away at the current bearish structure and might encourage short-covering.
What could derail a recovery?
Investors should also be aware of the downside risks. If the Davos panel yields mostly familiar talking points without new, actionable developments, the event could be a “sell the news” moment rather than a bullish catalyst. Given that markets often price in expectations ahead of major appearances, any perceived disappointment could reinforce the current downtrend.
Similarly, if the Supreme Court decision on tariffs or other macro headlines trigger another wave of risk aversion, speculative assets like XRP could remain under pressure regardless of positive project-specific updates. A clear breakdown below the current Murrey Math support would open the door to deeper retracements and invalidate the bullish hammer pattern.
Medium-term outlook: beyond the next headline
Stepping back from the day-to-day volatility, XRP’s trajectory in 2026 appears tightly linked to three themes:
1. Tokenization adoption: The extent to which XRP Ledger becomes a preferred platform for tokenized real-world assets, stablecoins, and institutional settlement.
2. Regulatory clarity: Whether key jurisdictions, especially the US, provide predictable rules that allow large financial institutions to use XRP without legal uncertainty.
3. Macro environment: The broader appetite for risk assets in an era of shifting interest-rate policies, geopolitical tensions, and changing trade dynamics.
If Ripple can continue scaling tokenization volumes, secure more institutional partnerships, and navigate regulatory hurdles, short-term dips like the current one may be viewed as opportunities by long-term believers. Conversely, stalled adoption or fresh regulatory roadblocks could transform rebounds into mere bear-market rallies.
Trading considerations for XRP in this environment
For traders, the current setup suggests a need for disciplined risk management:
– Watch the $1.85 area and the Murrey Math support: A sustained hold above this zone, especially with confirmation from higher lows on lower timeframes, would strengthen the rebound case.
– Monitor the 50-day moving average: A decisive break back above it would be an early sign that the medium-term trend is shifting in favor of bulls.
– Track reaction to Davos and tariff headlines: Price response to Garlinghouse’s remarks and macro rulings may matter more than the content itself in the short run, as markets reveal whether expectations were too pessimistic or too optimistic.
Bottom line: poised for a bounce, but not guaranteed
Technically, XRP is at a level where rebounds often begin, supported by a hammer candlestick and major support on the Murrey Math framework. Fundamentally, a high-visibility appearance by Ripple’s CEO in Davos and a pivotal macro ruling on tariffs add extra fuel for volatility and a possible recovery.
While these factors tilt the probabilities toward a corrective bounce before or shortly after the Davos panel, the move is not guaranteed. Traders and investors should treat any rally toward the $2.25 resistance zone as a test of whether sentiment around XRP has genuinely turned—or whether it is simply another pause within a larger corrective phase.