XRP Faces 4% Decline Amid Bitcoin's Dip Below $88,000: Will $1.88 Support Level Hold?
XRP Decline Overview
XRP saw a nearly 4% decrease as Bitcoin slipped under the $88,000 threshold on Sunday. This downturn precedes a busy week with the Federal Reserve's two-day FOMC meeting and key tech earnings announcements.
Market Context
- Spot XRP ETFs experienced significant outflows, totaling approximately $40.6 million, indicating short-term institutional profit-taking.
- No adverse events were reported regarding Ripple or the XRP Ledger during this period.
- Ripple's regulatory status and its use case in payments remain stable, with price movements driven by market structure and reduced trading activity.
Price Movement Analysis
- Over 24 hours ending Jan. 25, XRP fell from $1.92 to $1.90, maintaining a narrow 1.8% range. Support at $1.88-$1.89 has been repeatedly tested but holds firm since XRP dropped below $2.00.
- A notable surge in volume to 34.5 million tokens occurred at 09:00 UTC as XRP dipped towards $1.89, only to rebound above $1.90, indicating a failed breakdown attempt.
- Post-rebound, trading activity diminished sharply, with volume decreasing by session end, suggesting cautious buyer and seller behavior.
- XRP's intraday attempt to recover to $1.92 was swiftly rejected, maintaining the sideways price pattern.
Technical Insights
Technically, XRP remains in a consolidation phase. The market has established a support base around $1.88, forming a triple-bottom pattern. While buyers emerge at this level, upward movements remain modest.
Resistance persists above current prices, with selling pressure near $1.93-$1.95, and a descending trendline around $2.10. As long as XRP remains below these points, upward attempts may falter.
Volume trends align with consolidation, with spikes linked to reversals rather than breakouts, and declining volume into session close reflects indecision rather than active buying or selling.
Trader Considerations
XRP is consolidating, not collapsing.
- Support at $1.88 is intact, suggesting diminishing seller momentum.
- Declining volume often precedes significant moves once direction is determined.
- ETF outflows indicate repositioning and profit-taking, not eroding confidence.
Currently:
- A move above $1.95 could initiate recovery toward $2.03-$2.06.
- A drop below $1.85 would undermine the base, increasing downside risk.
- Until then, XRP is likely to remain range-bound, challenging trend traders but benefiting short-term, mean-reversion strategies.
In essence: XRP isn't weak enough to collapse, but not yet strong enough to surge.