XRP drops to $1.79 after failed breakout triggers liquidation of positions

XRP’s failed attempt to break above $2.00 resulted in a sharp turnaround in the market, with the price dropping to $1.79 — marking a 24-hour low with a 6.52% decline. The movement was less driven by specific news and more by positioning dynamics, where sellers took advantage of the failure of the breakout to liquidate late long trades.

Failed Breakout Above $2.00 Triggers Massive Selling

The stock started promising as XRP crawled a momentary rally near $2.00, raising hopes that resistance would be broken. However, this frustrated attempt was not sustained. With aggressive volume intensifying, sellers quickly took control, breaking the previous support at $1,972 and forcing a deeper pullback.

What once appeared to be the start of a confirmed breakout turned into a clearly negative short-term structure, with lower highs forming below $1.98. This typical sequence of a failed breakout — a momentary rise followed by a sharp fall — eliminated the late long trades that entered near the peaks.

Support at $1.79 vs. Resistance at $2.00: The Critical Scenario

The price has now stabilized near $1.79, which has established itself as the new key support of the day. Meanwhile, the previous level of $1.96 and the $2.00 mark act as significant resistances, creating a compression zone that defines XRP’s next binary move.

Traders are watching this move not as a confirmed trend reversal but as a technical readjustment after an unsuccessful attempt. If the support at $1.79 gives way, the selling could extend towards $1.75 and potentially $1.70. On the other hand, if XRP manages to reclaim the $2.00 with sustained volume, buyers will look for a gradual climb to $2.05, a level that will reset the bullish structure on the larger timeframes.

Broader Context: Crypto Market Under Pressure in January

This thwarted XRP move does not occur in isolation. The cryptocurrency market as a whole faces significant pressure, with Bitcoin retreating below $84,000 and spot trading volumes halving — from $1.7 trillion the previous year to $900 billion currently.

Most crypto-related assets fell further in the last session, reflecting cautious sentiment among investors amid macroeconomic uncertainties. Only those Bitcoin miners that pivoted to AI infrastructure and high-performance computing continued to outperform, suggesting a selective relocation within the industry.

What Should Traders Do Now?

For now, XRP remains stuck between a bearish structure in the short term and a broader consolidation on the larger timeframes. The next significant move will depend on whether $1.79 holds or is broken.

If $1.79 resists and XRP reclaims $2.00, expect a gradual recovery towards $2.05. If $1.79 is broken, the fall will extend towards the $1.70 zone. For now, the binary is primed — a question of which side will give in first.