Bitcoin fell below the $88,000 milestone on Sunday, and XRP fell nearly 4%, ahead of a busy week in which major technology companies report earnings after the Federal Reserve’s two-day FOMC meeting begins on Wednesday.
news background
- The consolidation comes as the Spot XRP ETF recorded its first meaningful weekly outflows since its launch, totaling approximately $40.6 million, indicating short-term institutional profit-taking rather than new risk-on positions.
- During the period, there were no negative developments regarding Ripple or the XRP ledger.
- Ripple’s regulatory position and payments use case will remain in place, with price action driven primarily by market structure, positioning, and participant attrition rather than fundamentals.
Overview of price fluctuations
- XRP gradually fell from about $1.92 to $1.90 in the 24 hours ending January 25, trading within a narrow 1.8% range. The price has repeatedly tested support around $1.88 to $1.89, a level that has held multiple times since XRP fell below $2.00 earlier this week.
- The most notable move of the session occurred around 09:00 UTC, when XRP fell towards $1.89 before volume briefly spiked to 34.5 million tokens before rebounding above $1.90.
- This move indicates a failed breakdown attempt rather than the start of a trend. After the rally, trading activity subsided sharply and trading volumes declined by the close. This indicates that both buyers and sellers have retreated.
- On an intraday basis, XRP attempted a small bounce towards $1.92, but it was quickly rejected and the price returned to $1.90. Unable to regain higher levels, more extensive lateral structures were strengthened.
technical analysis
From a technical perspective, XRP is still in a state of consolidation rather than a trend. The market has carved out a clear benchmark around $1.88, forming what technicians describe as a triple-bottom support zone. Each test attracted buyers, but the rebound was shallow.
Resistance remains above price. Short-term selling pressure is around $1.93 to $1.95, but a more pronounced downtrend line is closer to $2.10. As long as XRP stays below these levels, any attempt at an upward move is likely to fade.
Volume behavior supports unified views. The surge in participation coincides with a reversal rather than a breakout, and the sharp decline in volume towards the close suggests indecision rather than active accumulation or distribution.
What traders need to know
The important point is that XRP is not being decomposed, it is being compressed.
- The support near $1.88 is holding, indicating that the sellers are losing momentum rather than accelerating.
- Volume is depleting, and once direction is established, it often precedes a larger move.
- ETF outflows reflect rotation and profit-taking, not a loss of confidence in the asset.
For now:
- A break above $1.95 would signal the beginning of a structural repair towards $2.03-$2.06.
- A break below $1.85 will invalidate the benchmark and downside risk will increase again.
- Until then, XRP remains range bound, likely to frustrate trend traders, who tend to favor short-term mean reversion setups.
Simply put, XRP is not weak enough to break, but not strong enough to run.
