XRP Drops After Losing $2.23 Support While ETF Inflows Suggest Accumulation
XRP extended its decline after breaking the $2.23 support, trading around $2.05 (-2.35% 24h) as selling pressure persisted. Volume spiked ~196% to $3.27 billion, signaling elevated market participation. On-chain data showed roughly $22.43 million of XRP moved off exchanges over 24 hours, indicating potential accumulation by holders. Derivatives positioning revealed concentrated liquidation clusters: about $36.15 million in cumulative long liquidation near $2.017 (support) and $21.06 million in cumulative short liquidation near $2.113 (resistance). Traditional-market interest remained notable — U.S. spot XRP ETFs reported a $4.93 million daily net inflow on Jan 9 and cumulative net inflows near $1.22 billion, pointing to steady institutional demand. Technicals skewed bearish on the daily chart after losing the 50-day EMA; failure to reclaim that EMA could see XRP fall about 6.5% toward $1.90. Momentum (ADX 28.49) confirms a strong directional trend tilted downward, though weekly horizontal support around $2.02 keeps broader bullish scenarios feasible if it holds. For traders: watch price reaction around the $2.02–$2.05 liquidity band, monitor exchange outflows and ETF flow updates for signs of accumulation, and be mindful of nearby liquidation zones that could trigger sharp moves.
Bearish
Price action shows clear short-term bearish bias after losing the $2.23 level and the 50-day EMA, supported by a rising ADX indicating a strong directional move. Elevated volume alongside heavy exchange outflows suggests both high participation and potential accumulation, but accumulation alone has not halted the decline. Derivatives data exposes concentrated liquidation clusters: significant long liquidation near $2.017 (support) could accelerate downside if taken out, while short liquidation near $2.113 offers immediate resistance for any rebound. Institutional ETF inflows (daily and cumulative) provide structural support and may limit extreme downside, but they have so far only partially countered retail/derivatives-driven selling. Historically, similar setups—loss of key EMA/support with clustered liquidations—have produced rapid declines followed by volatility-driven rebounds when institutional buying reasserts. Short-term implication: elevated risk of further downside and volatile chop; traders should protect long positions, consider tighter stops, or trade range/liquidity plays around $2.02–$2.11. Long-term implication: if ETFs and exchange outflows continue, structural accumulation could underpin a recovery, but confirmation requires price reclaiming the 50-day EMA and sustained reduction in liquidation pressure.