XRP fell to $2.27 after breaking below the $2.32 support, but heavy volume up to $2.21 attracted bids and stabilized the move, leaving traders focused on whether the bounce can recover between $2.31 and $2.32 or if the market remains stuck in a descending channel.
News background
XRP traders are weighing a short-term drop in spot price against a long-term bullish setup in the XRP/BTC ratio.
Chartist “The Great Mattsby” said that XRP/BTC is about to surpass the monthly Ichimoku cloud for the first time since 2018, a change that historically indicates that The setup is attracting attention as cross-asset rotation narratives begin to resurface early in the year, even as spot markets remain sensitive to pockets of liquidity and stops-driven moves.
That relative strength framework is important because XRP’s latest sell-off came with evidence of forced selling rather than a slow hemorrhage, the type of move that often resets positioning and establishes a cleaner technical base if buyers can hold key levels.
Technical analysis
XRP fell 5% during the 24-hour period ending January 7 at 02:00, falling from $2.39 to $2.27 after losing support at $2.32 and extending a descending channel that has capped recent bounces.
The key event occurred at 16:00 on January 6, when volume increased to 256.3 million (142% above the 24-hour SMA) and the price marked the session low at $2.21. That spike behaved like a capitulation-style flush: Aggressive selling hit the tape, but follow-through failed to push the market materially below $2.21, implying that demand absorbed the move.
From there, XRP attempted to rally but stalled near $2.31, reinforcing that zone, along with the broken $2.32 level, as the first significant resistance band. The inability to regain that range maintains the short-term bearish structure even as the market shows signs of stabilization after the high volume low.
The short-term action suggests that the base is trying to form. The 60-minute structure showed multiple defenses of the $2,258-$2,260 area, with higher lows developing after the 01:33 low at $2,257. Buying volume was concentrated on rallies, while pullbacks came on the back of lighter activity – a constructive look, but still within a broader downtrend until $2.31-$2.32 recovers.
Price Action Summary
- XRP fell from $2.39 to $2.27, breaking below $2.32 support
- The session low was recorded at $2.21 during a volume increase of 256.3 million (142% above average)
- Recovery attempts have repeatedly stalled near $2.31, keeping the descending channel intact
- Intraday stabilization formed around $2,258-$2,260, with buyers defending the range several times.
What traders should know
The trade is clean at the moment: $2.21 is the line and $2.31-$2.32 is the gate.
- If $2.21 holds and
- If $2.21 fails, the capitulation low stops being a floor and becomes a trigger. This would likely invite another wave of liquidation-style selling in the next pocket of demand (which traders will typically map using previous consolidation zones and market structure rather than a single indicator).
The other layer to watch is XRP/BTC: The monthly Ichimoku setup that Mattsby circulates is a relative strength signal, not a spot price guarantee, but if
