XRP is trying to regain the $2 mark after a keen collapse that briefly pushed the price towards the $1.85 level. While bulls try to stabilize this move, the broader market remains under pressure as macroeconomic uncertainty increases and analysts continue to warn that the cryptocurrency could enter a deeper bear market. In this environment, volatility is amplified by leverage, and the XRP derivatives market has become a clear battleground.
CryptoQuant’s report highlights that January 18 was one of the most painful sessions for leveraged traders this month. Data from XRP Exchange Liquidation Metrics shows a immense wave of forced liquidations covering long positions on major exchanges, signaling that many traders have moved too aggressively into a move lower. Unlike trading volume or the number of open positions, liquidation data reflects the involuntary closing of positions, meaning that investors have been eliminated rather than choosing to exit.
The total number of long liquidations was reported to have exceeded $5 million that day, representing an exceptional cluster of liquidations in January. Binance played a dominant role in poker, accounting for approximately $1.05 million in long liquidations, solidifying its position as a key driver of near-term XRP volatility.
Macro headlines have triggered an enhance in XRP leverage
A report by CryptoQuant suggests that the surge in XRP liquidations on January 18 was not purely technical in nature, but part of a broader macroeconomics-based de-risking movement that immediately hit the entire cryptocurrency market. Instead of a sluggish bleeding out, the sell-off appeared to be a synchronized shock, with multi-asset investors forced to reduce exposure as global market uncertainty increased.
According to the report, the reason was geopolitical and trade war rhetoric. The Financial Times reported that European capitals could respond to U.S. pressure on Greenland by considering tariffs worth up to 93 billion euros ($107.7 billion) and even limiting access to the EU market for U.S. companies. Even without immediate political action, the headline itself was enough to revive fears of renewed transatlantic escalation.
Markets typically treat these events as a threat to liquidity. As tariffs and retaliation enter the narrative, investors begin to price in slower growth, tighter financial conditions and greater volatility. Crypto, while still behaving like a high-beta risk asset, tends to react quickly.
The fall in Bitcoin’s price from over $95,000 to below $93,000 added fuel to the fire, strengthening the downward momentum on all altcoins. In the case of XRP, this pressure quickly escalated into forced selling as leveraged long positions were liquidated into the falling market rather than voluntarily exiting it.
XRP struggles below $2 after keen rejection
XRP is trying to stabilize after a keen decline that dragged the price back to the $1.85-2.00 zone. The daily chart shows a clear rejection of the recent rebound high near $2.40, followed by an aggressive sell-off that wiped out most breakout attempts. XRP is currently trading at around $1.97, hovering just below the psychological level of $2. Which turned into a short-term reversal of momentum.
From a market structure perspective, this trend remains under pressure. Price continues to move within the major moving averages, with the faster average moving and acting as vigorous resistance. The medium-term curve is also sloping, supporting the view that rallies continue to be sold rather than held. This is consistent with a broader pattern of lower highs since the October peak. This suggests that the market is still in a corrective phase.
The wick structure and repeated failed moves towards the $2.20-$2.40 region show that sellers are aggressively defending this supply zone. At the same time, buyers are taking action near $1.85, creating an apparent floor in demand that has held despite recent volatility.
For bulls, regaining $2.10-$2.20 is the first step towards recovery. Otherwise, a re-break towards $1.85 remains a legitimate risk.
