XRP’s January Rally Erased in One Session as Support Near $1.88 Falters
XRP’s January gains were wiped out on January 26 when the price plunged to about $1.88 with a downside wick near $1.81, reversing the month’s rally in a single session. Technical indicators showed weak momentum—RSI remained subdued and MACD offered little bullish signal—leaving traders focused on whether $1.88 would hold or give way to the next major support at $1.73. Institutional flows stayed positive: XRP ETFs recorded roughly $1.36 billion in total inflows by January 23, and Bitwise contributed $3.43 million on the day of the drop. On-chain data indicated increased whale accumulation as the price dipped under $2 and intensified around $1.88. Ripple CEO Brad Garlinghouse reiterated bullish longer-term expectations at the World Economic Forum, citing adoption and regulatory clarity, but the price action showed a disconnect from that outlook. For traders, the key near-term levels are $1.88 (critical support) and $1.73 (next major support); failing those could accelerate selling, while sustained whale and ETF demand would be needed to rebuild momentum.
Neutral
The news presents mixed signals rather than a clear market direction. Negative elements include a sharp one-day reversal that erased January gains and weak momentum indicators (RSI, MACD), which increase short-term downside risk if the $1.88 support fails and $1.73 is tested. Positive elements include continued institutional ETF inflows (~$1.36B by Jan 23) and notable whale accumulation around the dip, which can provide buying support and reduce the likelihood of a protracted crash. Leadership comments from Ripple’s CEO add a bullish narrative but have limited immediate price impact. Historically, similar scenarios—large ETF/institutional interest combined with on-chain accumulation but weak technicals—often produce range-bound action or volatile bounces rather than sustained rallies until clear technical confirmation (higher highs, improving momentum) appears. Therefore impact is best categorized as neutral: elevated risk in the short term if support breaks, but material downside is mitigated by institutional demand and whale buying unless selling accelerates.