XRP sank nearly 4% as bitcoin fell below the $88,000 mark on Sunday, ahead of a busy week with the Federal Reserve’s two-day FOMC meeting beginning on Wednesday and major tech players announcing earnings.
News background
- The consolidation came as XRP spot ETFs recorded their first significant weekly outflows since their launch, totaling approximately $40.6 million, indicating short-term institutional profit-taking rather than new risk positioning.
- There were no negative developments surrounding Ripple or XRP Ledger during the period.
- Ripple’s regulatory position and payments use case remain intact, leaving price action driven primarily by market structure, positioning, and reduced participation rather than fundamentals.
Price Action Summary
- XRP fell from approximately $1.92 to $1.90 during the 24-hour period ending January 25, trading within a tight 1.8% range. The price repeatedly tested support near $1.88-$1.89, a level that has now held several times since XRP fell back below $2.00 earlier in the week.
- The most notable move of the session came around 09:00 UTC, when volume briefly increased to 34.5 million tokens as XRP fell to $1.89 before recovering above $1.90.
- That move marked a failed breakout attempt rather than the start of a trend. After the bounce, trading activity faded sharply and volume plummeted toward the close, a sign that both buyers and sellers took a step back.
- On an intraday level, XRP attempted a modest rally towards $1.92 but was quickly rejected, sending the price back to $1.90. The inability to recover higher levels reinforced the broader lateral structure.
Technical analysis
From a technical point of view, XRP remains stuck in consolidation rather than trending. The market has created a clear base near $1.88, forming what technicians would describe as a triple bottom support zone. Each test has attracted buyers, but the rebounds have been superficial.
Resistance remains above price. Short-term selling pressure lies between $1.93 and $1.95, while a more significant descending trend line approaches $2.10. As long as XRP remains below these levels, bullish attempts are likely to fade.
Volume behavior supports the consolidation view. Spikes in participation have coincided with reversals rather than breakouts, and the sharp drop in volume towards the close suggests indecision, not accumulation or aggressive distribution.
What traders should know
The key takeaway is that XRP is compressing, not breaking down.
- Support near $1.88 holds, indicating that sellers are losing momentum rather than accelerating.
- Volume is drying up, which often precedes a larger move once direction is resolved.
- ETF outflows reflect rotation and profit taking, not a loss of confidence in the asset.
For now:
- A move above $1.95 would signal the start of structural repair towards $2.03-2.06.
- A break below $1.85 would invalidate the base and reopen the downside risk.
- Until then, XRP is likely to remain rangebound, frustrating trend traders but favoring near-term mean reversion setups.
In simple terms: XRP is not weak enough to break, but it is also not strong enough to run, yet.
