XRP broke decisively below the $2.00 support level on Monday evening, trading near $1.95 against the U.S. dollar at 8:13 p.m. ET. The broader crypto market cap slipped to roughly $3.12 trillion, reinforcing a risk-off tone across digital assets. Price fell from a narrow consolidation zone around $2.04–$2.06 on heavy volume, with a large red candle pushing beneath the lower boundary of the recent range—sellers now control the short-term direction.
XRP Sinks Below $2.00 as Selling Pressure Accelerates
Short-term price action had been defined by extended sideways movement under falling resistance, with multiple upside attempts stalling out. That equilibrium finally broke as support near the mid-$2.00 area gave way, triggering a swift wave of selling that aligned with the broader market retreat. Volume surged during the breakdown, underscoring the urgency of the move, before easing as price stabilized modestly off the lows. The failure to reclaim former support suggests the prior range functioned as a distribution phase rather than a base for renewed upside.
$40.57 Million in Liquidations, Mostly Longs
According to Coinglass, XRP saw $40.57 million in forced deleveraging over the past 24 hours, with long positions accounting for $39.81 million and shorts limited to $760,900. In the most recent hour, another $251,950 in positions were liquidated—$228,100 longs versus $23,800 shorts. The aggressive unwind of bullish exposure amplified the downward momentum.
Macro and Regulatory Headwinds
Geopolitical and regulatory uncertainty added to the selling pressure. President Trump announced a 10% import tariff on eight European nations starting Feb. 1, with a potential rise to 25% by June if no agreement is reached, triggering coordinated European retaliation fears. Domestically, a Senate markup of crypto market structure legislation was delayed. Coinbase withdrew its support, with CEO Brian Armstrong warning the framework could harm consumers if rushed. Ripple CEO Brad Garlinghouse voiced frustration over prolonged inaction, arguing that even imperfect regulatory clarity is better than ongoing uncertainty.
Technical Indicators Flash Extreme Oversold
The RSI has plunged to 19.7, firmly in oversold territory, reflecting extreme short-term downside momentum. The MACD turned sharply lower, with the MACD line near -0.0109 and the signal line around -0.0191; the histogram went negative, confirming bearish acceleration. XRP is trading well below both the 50-period simple moving average ($2.054) and the 200-period SMA ($2.081), leaving layered resistance above. Bollinger Bands 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, not a controlled pullback.
The technical backdrop remains fragile unless XRP can reclaim the lower Bollinger Band and work back toward the mid-band. While oversold conditions may invite short-term bounces, the broader bias stays bearish as long as price stays below declining moving averages and momentum indicators fail to stabilize. Any recovery attempt must first contend with the $2.00–$2.04 zone as newly established resistance.