XRP reversed sharply on January 26, erasing the gains of January and returning to the support zone around 1.88 USD, causing the market to focus on the risk of breaking the next support.
The rapid decline has led to a negative technical signal, although the Crypto ETF inflow and whale buying activity still show positive signs. The central question is whether the support around 1.88 USD is enough to stabilize the price.
MAIN CONTENT
XRP has lost momentum and dropped to 1.88 USD, with the risk of further declines if support is not maintained.
Crypto ETF inflows remain positive and whales buy heavily when prices are below $2, but prices have not reacted positively.
The $1.73 threshold is the next important support level if $1.88 is broken.
XRP erased the January gains and returned to the $1.88 support area.
XRP fell sharply on January 26, dropping to $1.88 and showing a wick down near $1.81, nearly erasing all previous gains in January.
This development marks a clear reversal after the previous uptrend, forcing traders to reassess the certainty of recovery efforts. The price returning to the familiar area around $1.88 shifts the market's focus from expectations of a rise to the scenario of 'holding support or breaking support'.
At the time of observation, the short-term story is no longer 'how high will it rise', but 'can it hold the $1.88 mark'. If buying power cannot maintain this area, selling pressure may return quickly due to disappointment after the gains were erased in a session.
Weak RSI and MACD indicate that buyers lack conviction.
Momentum indicators do not support recovery: RSI is sluggish and MACD is weak, indicating that buying power is not strong enough to create a sustained upward move.
When the RSI does not improve significantly and the MACD does not give positive signals, the market often struggles to form a clear uptrend. This increases the likelihood of XRP being stuck in a narrow range, where buyers only defend the support area instead of actively pushing the price up.
With weak momentum, any bounce is likely to be seen as a technical correction. Thus, traders often monitor price reactions around $1.88 to determine whether this is a real accumulation area or just a temporary stop before further declines.
Crypto ETF inflows remain positive despite price declines.
Despite XRP's sharp decline, Crypto ETF inflows remain positive: Bitwise has $3.43 million in inflows, and total inflows for XRP ETFs exceed $1.36 billion as of January 23.
It is noteworthy that institutional inflows did not 'rush out' immediately when prices weakened, implying that there is still a certain level of confidence in the mid-term story. However, positive inflows do not mean prices will rise immediately, especially when technical momentum is weak and the overall market is cautious.
The market issue is the durability of this confidence: if XRP continues to 'fail to hold its price floor', institutional investors may reduce their pace of disbursement or pause, weakening support during subsequent corrections.
Whales increase buying when XRP drops below $2, most strongly around $1.88.
CryptoQuant data shows that whales buy heavily when XRP falls below $2, and activity becomes 'hotter' when prices hit $1.88.
Whales accumulating in a declining area are often interpreted as expecting a rebound, or taking advantage of low prices to accumulate. However, even when significant buying power appears, prices may not stabilize immediately, indicating that selling supply remains considerable or market sentiment remains defensive.
In this context, the practical question is whether whales can continue to act as a 'support base' if selling pressure persists. Without improved momentum, whale accumulation may only help slow the decline rather than reverse the trend.
Brad Garlinghouse expects XRP to reach new highs, but the market is still focused on the short-term structure.
Ripple CEO Brad Garlinghouse remains optimistic and says he believes XRP will be able to reach an all-time high, based on acceptance levels and better legal clarity.
"I am very optimistic, and yes, I will publicly say that I think we will see an all-time high."
- Brad Garlinghouse, CEO of Ripple, speaking at the World Economic Forum.
Despite the positive message, prices have recently not reflected that expectation. The disconnect between the long-term story and short-term price behavior causes traders to prioritize observing support/resistance structures rather than forecasting long-term peaks.
Technically, $1.88 is an important pivot point. If it cannot hold $1.88, $1.73 will become the next significant support area. A decisive break below $1.73 could increase selling pressure quickly and extend the correction.
Conclusion: XRP needs to hold $1.88 to avoid the risk of falling back to $1.73.
XRP is in a defensive state: Crypto ETF inflows and whale accumulation are support points, but weak RSI and MACD momentum limit the potential for a sustainable rebound.
In the short term, the central scenario is the potential for stability around $1.88. If this area holds, XRP has a chance to move sideways and accumulate before seeking to regain upward momentum. Conversely, if $1.88 is breached, the market may quickly shift to test $1.73 as the next support level.
Frequently asked questions.
What price is currently the most important support for XRP?
The $1.88 region is currently a key support. If XRP cannot hold $1.88, the $1.73 region is seen as the next significant support on the technical structure.
Why is XRP declining sharply despite positive Crypto ETF inflows?
Positive Crypto ETF inflows indicate that investment demand still exists, but short-term prices depend on momentum and selling pressure. Weak RSI and MACD imply that buying power is not strong enough to absorb the supply during the downturn.
Will whales buying heavily around $1.88 ensure XRP's recovery?
No. Whale accumulation may create support, but if market momentum is weak and selling pressure continues, prices may still decline further. The signal to watch is the ability to hold $1.88 and price reactions when approaching $1.73.
Source: https://tintucbitcoin.com/hai-yeu-to-xoa-da-tang-xrp-thang-1/
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