XRP drops 4% as traders watch whether $1.88 support holds

XRP sank nearly 4% as bitcoin dropped under the $88,000 mark on Sunday, ahead of a busy week with the Federal Reserve's two-day FOMC meeting starting on Wednesday and major technology players announcing earnings.

News background

• The consolidation came as spot XRP ETFs recorded their first meaningful weekly outflows since launch, totaling roughly $40.6 million, signaling near-term institutional profit-taking rather than fresh risk-on positioning.
• There were no negative developments around Ripple or the XRP Ledger during the period.
• Ripple’s regulatory standing and payments use case remain intact, leaving price action driven primarily by market structure, positioning, and reduced participation rather than fundamentals.

Price action summary

• XRP edged lower from about $1.92 to $1.90 over the 24-hour period ending Jan. 25, trading within a tight 1.8% range. Price repeatedly tested support near $1.88–$1.89, a level that has now held multiple times since XRP slipped back below $2.00 earlier in the week.
• The session’s most notable move occurred around 09:00 UTC, when volume briefly surged to 34.5 million tokens as XRP dipped toward $1.89 before bouncing back above $1.90.
• That move marked a failed breakdown attempt rather than the start of a trend. After the bounce, trading activity faded sharply, with volume collapsing into the close — a sign that both buyers and sellers stepped back.
• On an intraday basis, XRP attempted a modest rebound toward $1.92 but was rejected quickly, sending price back toward $1.90. The inability to reclaim higher levels reinforced the broader sideways structure.

Technical analysis

From a technical standpoint, XRP remains stuck in consolidation rather than trending. The market has carved out a clear base near $1.88, forming what technicians would describe as a triple-bottom support zone. Each test has attracted buyers, but rebounds have been shallow.

Resistance remains layered above price. Near-term selling pressure sits around $1.93–$1.95, while a more significant descending trendline comes in closer to $2.10. As long as XRP stays below these levels, upside attempts are likely to be faded.

Volume behavior supports the consolidation view. Participation spikes have coincided with reversals rather than breakouts, and the sharp drop-off in volume into the close suggests indecision, not aggressive accumulation or distribution.

What traders should know

The key takeaway is that XRP is compressing, not breaking down.

• Support near $1.88 is holding, indicating sellers are losing momentum rather than accelerating.
• Volume is drying up, which often precedes a larger move once direction is resolved.
• ETF outflows reflect rotation and profit-taking, not a loss of confidence in the asset.

For now:

• A move above $1.95 would signal the start of structural repair toward $2.03–$2.06.
• A break below $1.85 would invalidate the base and reopen downside risk.
• Until then, XRP is likely to remain range-bound, frustrating trend traders but favoring short-term, mean-reversion setups.

In simple terms: XRP isn’t weak enough to break, but not strong enough to run — yet.