XRP nears key support after steep sell-off

​​​XRP nears support area

​XRP has experienced a turbulent spell since October, with a sharp 55% sell-off underlining how sensitive the token remains to shifts in macro sentiment, leverage and investor positioning, even as its longer-term adoption narrative continues to evolve.

​Going into the second half of January, XRP had already begun to lose momentum after a strong start to the year. Earlier gains of close to 40%, driven by optimism around regulatory clarity and renewed institutional interest, had lifted prices sharply from late-2025 levels. That rally, however, left XRP increasingly vulnerable to profit-taking, particularly as broader crypto market liquidity thinned and risk appetite began to waver.

​The current sell-off gathered pace as a broader risk-off move swept through global markets. Briefly rising bond yields, renewed uncertainty around the timing of interest-rate cuts and weakness across equity markets triggered de-risking across speculative assets.

​XRP, which tends to amplify moves during periods of market stress, came under pressure as traders cut exposure quickly, pushing the token down through near-term support levels and accelerating losses.

​Leverage played an important role in magnifying the decline. In the days leading up to the sell-off, derivatives data showed a build-up of long positions as traders positioned for further upside following XRP’s early-year strength. When prices failed to extend higher and instead rolled over, funding rates softened and stop-losses were triggered. Liquidations followed, forcing leveraged longs out of the market and driving XRP lower than spot selling alone might have caused.

​Sentiment specific to the XRP ecosystem also contributed to volatility. While discussion around potential spot XRP exchange-traded products and broader institutional access has continued since mid-January, progress has remained incremental rather than decisive. This left short-term traders focused more on macro signals and technical levels than on longer-term narratives, reinforcing downside pressure when markets turned defensive.

​Macro conditions remain central to XRP’s near-term direction. As bond yields eased and equity markets stabilised and, in Asia and the United States (US), hit record highs, XRP participated but only in a very modest fashion, underscoring its loose correlation with shifts in global risk appetite. However, this week's mild recovery has so far lacked any follow-through, highlighting lingering caution among investors after the speed of the earlier decline and ongoing uncertainty around monetary policy and growth prospects.

​Taken together, XRP’s recent sell-off illustrates that the cryptocurrency remains vulnerable to abrupt swings driven by macro shocks and leveraged positioning. Over a longer horizon, continued progress in payments adoption, regulatory engagement and institutional interest provide a supportive backdrop that has so far limited downside.

​Looking ahead, XRP’s path will depend on whether broader market conditions continue to stabilise and whether buyers can build on the recovery without renewed selling pressure from short-term holders.

​For now, the current episode serves as a reminder that while XRP’s structural narrative has strengthened since mid-January, volatility remains a defining feature of its price action.

​XRP bearish case:

​While XRP remains below the 20 January high at $1.9894 on a daily chart closing basis, immediate downside pressure will remain in play with the $1.8193 - $1.7713 support area perhaps being revisited.

​Failure there may put the April low at $1.6153 on the cards.

​XRP bullish case:

​As long as XRP manages to hold in the $1.8193 - $1.7713 support zone on a daily chart closing basis, another attempt at the upside may be seen.

​For this to become probable, a rise and daily chart close above the 20 January high at $1.9894 would need to ensue. Even then the $2.0283 - $2.0859 resistance area may well thwart any upside short-term attempt. Only of overcome, could the early January peak at $2.4159 be back in play.

​Short-term outlook:

Bearish while below the 20 January high at $1.9894; only a rise above the 19 January high at $2.0283 would change the outlook to a neutral one, though.

​Medium-term outlook:

Neutral with a bearish bias while trading below the 14 January high at $2.1905 but above its $1.8193 November through.

XRP daily candlestick chart