XRP under pressure: when the price yields, liquidation cascades intensify

The fall of XRP below the psychological barrier of $2 triggered a series of events that replicate the classic pattern of crypto market clearing. When an important resistance is broken, especially with extreme volume, leveraged traders face forced liquidations, creating a sell cycle that fuels the decline itself.

In recent movements, XRP retreated significantly, with the price reaching lows near $1.87 before attempting to recover. The market behavior reflects exactly what happens after intensive clearing events: the price reacts quickly when selling pressure slows, but the continuation of the recovery remains uncertain until new buyers enter with conviction.

Price dynamics and liquidation cascades

Breaking the $2.05 level was not an isolated event — it was the trigger for a chain reaction. With the price plummeting to $1.87 in a few hours, a wave of automatic liquidations was triggered, wiping out long positions betting on continued upward movement. This is the brutal dynamic of leveraged markets: when the price decelerates violently, systems automatically liquidate.

The current context is important. While other crypto assets found strength and managed to hold or recover their quotes, XRP started to lag behind the broader complex. This suggests that the movement was not just a technical adjustment but a risk rotation among traders between different positions. Some exited XRP to explore opportunities elsewhere in the market.

After the initial drop, the price consolidated in a compressed range between $1.93 and $1.94, indicating that immediate selling pressure had decreased. However, this stabilization did not represent a true recovery — it was more of a pause before the market decides where to go next. Volume during the episode reached 335 million in one hour, confirming it was forced activity, not organic selling.

Technical analysis: support and resistance at a new level

For those closely watching XRP’s price, the technical structure is now clear and defines the next moves. The most important level — $2.05 — was broken downward and now acts as resistance instead of support. This is always the most significant signal: when a floor turns into a ceiling, the dynamics change significantly.

Critical points are now mapped:

Short-term support: $1.93 marks the first line of defense. If the price can stay above this level, there is still hope for a gradual recovery. A break below $1.93 would lead the market to revisit $1.91, where the initial clearing zone was. A failure at $1.91 would open the doors to sharper declines.

Critical resistance: $2.05 is now the real test. If XRP manages to recover and consolidate above this level, the narrative shifts — the drop would be seen as a simple repositioning, not the start of a deeper downtrend. Any move above $2.05 would signal renewed buyer interest.

Volume offers valuable clues. The extreme peak during the drop confirmed it was a liquidation, not a simple correction. After this event, volume compressed, which is typical — the market awaits new information or impulses to guide the next move.

Scenarios for traders: what to expect

This is a critical moment where XRP’s price is at a decision point. There are basically two scenarios unfolding:

Scenario 1 - Recovery: If XRP manages to hold support at $1.93 and begins to recover toward $1.95, traders will be watching for an attempt to return to the $2.00 level and eventually the critical resistance at $2.05. Consolidation above $2.05 would be the signal everyone is waiting for to confirm that the drop was just a technical adjustment.

Scenario 2 - Continued weakness: If support at $1.93 fails, especially with increasing volume, the next station would be $1.91. A failure at this deeper level would have more severe implications, suggesting that weakness is more structural than tactical. In this case, XRP’s price could face additional pressure as the “floor” after liquidation collapses.

The recovery so far appears cautious — it’s the signature of a market that remains uncertain about the direction. Forced sellers have been eliminated by liquidation, but that doesn’t mean new conviction-driven buyers have entered. It’s a waiting situation, not a confirmed recovery.

The broader context

XRP’s movement did not occur in isolation. The crypto market continues in transition, with capital flows shifting between different assets. While some sectors find strength, XRP lagged, suggesting not all assets benefit equally from market movements. This selective dynamic is common during times of uncertainty or risk rotation.

Traders monitoring XRP’s price action need to be prepared for both scenarios. The $2.05 level is the line in the sand — reclaiming it would confirm the event was just a technical cleanup, while failing to hold it would open the door to a deeper reassessment. For now, the price is on pause, and the next move will set the tone for the following weeks.