At 8:13 p.m., XRP is trading near $1.95 against the U.S. dollar, extending a sharp downside move as broader market conditions weaken. The decline in XRP is unfolding alongside a pullback in total crypto market capitalization, which has slipped to about $3.12 trillion, reinforcing the risk-off tone across digital assets. Price broke decisively lower from a narrow consolidation band near the $2.04–$2.06 area, with a large red candle pushing XRP beneath the lower boundary of its recent range and signaling a clear shift in short-term control toward sellers.

XRP’s short-term price action had been defined by extended sideways trade beneath falling resistance, with multiple attempts to push higher stalling out. That equilibrium ultimately broke lower as support around the mid-$2.00 zone failed, unleashing a swift wave of selling that aligned with the broader market retreat. Volume surged as the breakdown unfolded, highlighting the urgency of the move, before easing as price stabilized modestly off the lows. The failure to reclaim former support reinforces the view that the prior range functioned as a distribution phase rather than a base for renewed upside amid deteriorating market sentiment.

According to data from Coinglass, XRP experienced heavy forced deleveraging over the past 24 hours, with total liquidations reaching about $40.57 million as the sell-off accelerated. Long positions accounted for the vast majority of that figure, at roughly $39.81 million, while short liquidations remained limited near $760,900, underscoring how aggressively bullish exposure was unwound as price broke lower. That broader liquidation wave included a sharp burst of pressure in the most recent hour, when roughly $251,950 in positions were liquidated, led again by long positions near $228,100 compared with about $23,800 in shorts.

At the same time, a mix of geopolitical and regulatory uncertainty has weighed on broader market sentiment. Tensions have escalated between the United States and several European allies over Greenland after President Trump announced plans to impose a 10% import tariff on eight European nations beginning Feb. 1, with a warning that tariffs could rise to 25% by June absent an agreement. The coordinated response from Europe, along with reports of potential retaliatory measures, has added to macroeconomic unease. Domestically, uncertainty has been compounded by the delay of a Senate markup on crypto market structure legislation. Coinbase formally withdrew its support for the proposal, with CEO Brian Armstrong warning that the current framework could harm consumers if rushed forward, while Ripple CEO Brad Garlinghouse echoed concerns about prolonged inaction, arguing that regulatory clarity — even if imperfect — remains preferable to continued uncertainty as the stalled process clouds the policy outlook for digital assets.

Read more: XRP Sets Stage for Demand Shock as Ripple and UC Berkeley Expand Real-World Use Cases

Technical indicators underscore the severity of the recent momentum shift. The Relative Strength Index ( RSI) has plunged to around 19.7, firmly in oversold territory and reflecting extreme short-term downside momentum. The Moving Average Convergence Divergence ( MACD) has turned sharply lower, with the MACD line near -0.0109 and the signal line around -0.0191, while the histogram has flipped decisively negative, confirming bearish acceleration. From a Moving Average (MA) perspective, XRP is trading well below both the 50-period simple moving average near $2.054 and the 200-period simple moving average around $2.081, leaving layered resistance overhead. Bollinger Bands have expanded rapidly, with price pressing below the lower band near $1.973 after spending extended time near the middle band around $2.040, a pattern consistent with a volatility-driven breakdown rather than a controlled pullback.

Unless XRP can reclaim the lower Bollinger Band and work back toward the mid-band region, the technical backdrop remains fragile. Oversold conditions may invite short-term reactions, but the broader bias stays bearish while price remains below the declining moving averages and momentum indicators fail to stabilize. Continued weakness would keep downside risks elevated, while any recovery attempt will first need to contend with the $2.00–$2.04 zone as newly established resistance.

• Why is XRP falling sharply below the $2.00 level?
  XRP broke down from a key consolidation range near $2.04–$2.06 amid broader crypto market weakness, triggering heavy selling and signaling a shift to bearish short-term control.
• How significant are the recent XRP liquidations for investors?
  Roughly $40.6 million in XRP liquidations—mostly from long positions—highlight aggressive deleveraging and elevated downside risk during the sell-off.
• What do technical indicators suggest about XRP’s near-term outlook?
  With RSI deeply oversold near 19.7 and price well below key moving averages, XRP faces a fragile setup where bounces may occur but the broader bias remains bearish.
• How are macro and regulatory factors influencing XRP sentiment?
  Rising geopolitical tensions, proposed U.S. tariffs, and delays in U.S. crypto legislation have increased uncertainty, weighing on risk assets like XRP and dampening investor confidence.

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