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

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

Source: CoinDesk

Published:2026-01-25 18:03

BTC Price:$87883

#XRP #Consolidation #Crypto

Analysis

Price Impact

Med

Xrp saw a 4% drop following bitcoin's decline below $88,000. however, the price is stabilizing near the $1.88 support level, and institutional etf outflows are attributed to profit-taking rather than a loss of confidence. fading volume suggests a larger move is on the horizon once the current consolidation resolves.

Trustworthiness

High

Analysis provided by coindesk analytics, a reputable source, with detailed technical and fundamental insights including specific price levels, etf flow data, and volume analysis.

Price Direction

Neutral

Xrp is currently in a tight consolidation range between $1.88 support (forming a triple-bottom) and resistance around $1.93-$1.95. the price is described as 'compressing, not breaking down' and 'not weak enough to break, but not strong enough to run'. a break above $1.95 would signal bullish structural repair, while a drop below $1.85 would indicate downside risk.

Time Effect

Short

The current stalemate and fading volume indicate that a significant directional move is likely to occur in the short term, as the market resolves its indecision within the tight consolidation range.

Original Article:

Article Content:

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email XRP drops 4% as traders watch whether $1.88 support holds Price stabilizes near recent lows after a volatile pullback from above $2. By Shaurya Malwa , CD Analytics Jan 25, 2026, 6:03 p.m. Make us preferred on Google What to know : XRP slipped nearly 4% as bitcoin fell below $88,000, with price action driven more by market structure and positioning than by changes to Ripple’s fundamentals. Spot XRP ETFs saw about $40.6 million in weekly outflows, suggesting institutional profit-taking and rotation rather than a loss of confidence in the asset. XRP remains range-bound in a tight consolidation between support around $1.88 and resistance near $1.93–$1.95, with fading volume pointing to a larger move once the current stalemate resolves. 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. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . 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. More For You KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market By CoinDesk Research Dec 22, 2025 Commissioned by KuCoin KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market. What to know : KuCoin recorded over $1.25 trillion in total trading volume in 2025 , equivalent to an average of roughly $114 billion per month , marking its strongest year on record. This performance translated into an all-time high share of centralised exchange volume , as KuCoin’s activity expanded faster than aggregate CEX volumes , which slowed during periods of lower market volatility. Spot and derivatives volumes were evenly split , each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line. Altcoins accounted for the majority of trading activity , reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover. Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity , indicating structurally higher user engagement rather than short-lived volume spikes. View Full Report More For You Bitcoin slips below $88,000 ahead of Fed week and Big Tech earnings By Shaurya Malwa 16 minutes ago Bitcoin and major tokens weakened Sunday as markets position ahead of the Federal Reserve’s next rate decision and a heavy slate of Magnificent Seven earnings. What to know : Bitcoin fell below $88,000 in thin weekend trading, extending a weeklong pullback that has left most major cryptocurrencies sharply lower. Market sentiment remains fragile after more than $1 billion in leveraged crypto positions were liquidated amid recent volatility in currencies and bond markets. Traders are watching potential Japanese yen intervention, U.S. political brinkmanship over a spending bill and a heavy tech-earnings calendar, as the Federal Reserve is expected to keep interest rates unchanged. Read full story Latest Crypto News Bitcoin slips below $88,000 ahead of Fed week and Big Tech earnings 16 minutes ago Here's what Fed's highly anticipated rate decision this week means for bitcoin and the dollar 40 minutes ago Why 98% of gold investors don't actually own a gold bar—and why that’s a problem 1 hour ago How the ultra-wealthy are using bitcoin to fund their yacht upgrades and Cannes trips 2 hours ago Crypto ETFs with staking can supercharge returns but they may not be for everyone 3 hours ago Sui Group charts new course for crypto treasuries with stablecoins and DeFi 4 hours ago Top Stories The big U.S. crypto bill is on the move. Here is what it means for everyday users 5 hours ago Here's what bitcoin bulls are saying as price remains stuck during global rally Jan 24, 2026 Coinbase CEO says Big banks now view crypto as an ‘existential’ threat to their business 22 hours ago Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold 21 hours ago Ethereum Foundation makes post quantum security a top priority as new team forms Jan 24, 2026