XRP slipped below the $2.00 mark on January 20, after a failed breakout around that level triggered a sharp reversal, driven primarily by a cascade of liquidations among leveraged long positions and aggressive selling pressure.
XRP upward momentum stalled near $2.00 and sellers quickly seized control, forcing a rapid pullback. Data reported by news outlets cited a liquidation cascade of long positions as the proximate cause; that deleveraging amplified selling and produced a swift downside re-pricing.
Recovery attempts were tentative in the immediate aftermath as market participants pared risk and adjusted exposure. Market commentary noted that the price action effectively reset the short-term trend and increased near-term volatility until a clear catalyst re-established directional conviction.
Technical levels for XRP and market reaction
Traders and analysts pointed to a cluster of technical levels that framed the decline and its potential recovery. Immediate support had been identified just under $2.00, while resistance flipped after the breakdown.
A Binance post summarized the move tersely: ‘sellers regained control, driving the price downward,’ highlighting how quickly positioning shifts can cascade in a leveraged market.
The failure to hold $2.00 left XRP in a deleveraging phase and sustained volatility is likely while traders digest the breakdown. Investors are now watching whether buyers can retake $2.05; reclaiming that level would help frame the decline as a temporary shakeout rather than the start of a prolonged downtrend.
Until that barrier is convincingly cleared, downside scenarios identified by market observers remain relevant and catalysts will be required to shift momentum decisively.
