XRP slipped to $2.27 after falling below support at $2.32, but high volume at $2.21 attracted bids and stabilized the move, leaving traders focused on whether the rebound can reclaim $2.31 to $2.32 or whether the market remains stuck in a descending channel.
News context
XRP traders are weighing a short-term breakout in the spot price against a long-term bullish setup in the XRP/BTC ratio.
Chartist “The Great Mattsby” said XRP/BTC is poised to surpass the monthly Ichimoku cloud for the first time since 2018, a move that historically indicates XRP is positioned to outperform bitcoin if confirmed. This setup is drawing attention as stories of rotation between assets begin to re-emerge at the start of the year, although spot markets remain susceptible to pockets of liquidity and stop-triggered moves.
This relative strength framework is important because XRP’s latest selloff came with evidence of forced selling rather than a slow purge – the kind of move that often resets positioning and establishes a cleaner technical base if buyers can hold key levels.
Technical analysis
XRP fell 5% in the 24-hour period ending January 7 at 2:00 a.m. from $2.39 to $2.27 after losing support at $2.32 and extending a descending channel that capped recent rebounds.
The key event occurred at 4:00 p.m. on January 6, when volume surged to 256.3 million (142% above the 24-hour SMA) and price hit the session low at $2.21. This spike behaved like a capitulation-style wave: aggressive selling hit the band, but follow-through failed to push the market noticeably below $2.21, implying that demand absorbed the move.
From there, XRP attempted to rally but stalled near $2.31, reinforcing this area – as well as the broken $2.32 level – as the first significant resistance band. Failure to reclaim this range maintains the short-term bearish structure, even as the market shows signs of stabilization after the volume low.
Short-term action suggests the base is trying to form. The 60-minute structure showed several defenses in the $2.258-$2.260 area, with higher lows developing after the 01:33 low at $2.257. Buying volume was focused on surges higher, while pullbacks occurred on lighter activity – a constructive aspect, but still within a broader downtrend until $2.31 to $2.32 was reclaimed.
Price Action Summary
- XRP rose from $2.39 to $2.27, breaking below the $2.32 support.
- Session low printed at $2.21 during a volume increase of 256.3 million (142% above average)
- Recovery attempts repeatedly stalled near $2.31, keeping the descending channel intact.
- Intraday stabilization formed around $2.258 to $2.260, with buyers defending the range repeatedly.
What Traders Need to Know
The trade is clean right now: $2.21 is the line and $2.31 – $2.32 is the door.
- If $2.21 holds and XRP can reclaim $2.31 to $2.32, the move starts to look like a high-volume upset followed by an attempt at a trend resumption – setting the stage for a move back towards $2.39, where the supply overhead from the breakdown is located.
- If $2.21 fails, the capitulation low ceases to be a floor and turns into a trigger. This would likely invite another round of liquidation-style selling in the next pocket of demand (which traders will typically map using prior consolidation areas and market structure rather than a single indicator).
The other layer to watch is XRP/BTC: The monthly Ichimoku pattern broadcast by Mattsby is a relative strength signal, not a spot price guarantee – but if XRP/BTC confirms the breakout, it increases the chances that XRP dips will be bought more aggressively than bitcoin dips, especially during risky rotation windows.
