The
News context
- The consolidation came as spot XRP ETFs recorded their first significant weekly outflows since their launch, totaling approximately $40.6 million, signaling short-term institutional profit-taking rather than new risk positioning.
- There were no negative developments around Ripple or the XRP Ledger during the period.
- Ripple’s regulatory status and payments use case remain intact, leaving price action primarily driven by market structure, positioning, and reduced participation rather than fundamentals.
Price Action Summary
- XRP fell slightly from around $1.92 to $1.90 in the 24-hour period ending January 25, trading within a tight 1.8% range. Price repeatedly tested support near $1.88 to $1.89, a level that has held repeatedly since XRP fell back below $2.00 earlier in the week.
- The most notable move of the session occurred around 09:00 UTC, when volume briefly spiked to 34.5 million tokens as XRP plunged towards $1.89 before rebounding above $1.90.
- This decision marks the failure of an attempted break rather than the start of a trend. After the rebound, trading activity faded sharply, with volume collapsing at the close – a sign that buyers and sellers were pulling back.
- On an intraday basis, XRP attempted a modest rebound towards $1.92 but was quickly rejected, sending the price back towards $1.90. The inability to recover higher levels reinforced the broader lateral structure.
Technical analysis
From a technical perspective, XRP remains stuck in a consolidation rather than a trend. The market carved out a clear base near $1.88, forming what technicians would describe as a triple bottom support zone. Each test attracted buyers, but the rebounds were superficial.
Resistance remains above the price. Near-term selling pressure lies between $1.93 and $1.95, while a more significant descending trendline approaches $2.10. As long as XRP remains below these levels, upward attempts are likely to fade.
Volume behavior supports the consolidation view. Participation spikes coincided with reversals rather than breakouts, and the sharp decline in volume toward the close suggests indecision, not aggressive accumulation or distribution.
What Traders Need to Know
The takeaway is that XRP compresses and does not collapse.
- Support near $1.88 holds, indicating sellers are losing momentum rather than gaining momentum.
- The volume dries up, which often precedes a larger move once the direction is resolved.
- ETF outflows reflect turnover and profit-taking, not a loss of confidence in the asset.
For now:
- A move above $1.95 would signal the start of structural repairs towards $2.03 – $2.06.
- A break below $1.85 would invalidate the base and reopen downside risk.
- Until then, XRP will likely remain range-bound, frustrating trend traders but favoring short-term and mean-reversion setups.
Simply put: XRP is not weak enough to break, but not strong enough to run – yet.
