XRP Under Pressure From Liquidations: When Volume Measure Reveals History

XRP’s recent drop below $2 offers a crucial lesson in how to interpret market movements. While price captures attention, it’s the measure of volume that often exposes the true nature of a sell-off: whether it’s a forced sell-off or a genuine decline based on negative sentiment.

The volume spike as an indicator of forced liquidation

XRP fell from approximately $2.06 to as low as $1.906 as the volume measure revealed patterns typical of a leveraged position clearing. The extreme spike recorded — 335 million in volume at the time — is not the behavior of a normal “power sell-off.” Instead, this concentrated spike signals the kind of forced activity that occurs when stop-losses are triggered in a cascade.

This interpretation through the volume measure is essential: experienced traders recognize that extreme volumes in short periods point to liquidation events, not genuine selling interest. After the initial peak, the volume normalized significantly, and the price stabilized in a narrow range between $1.93 and $1.94 — exactly the expected behavior when the forced pressure ends and the market awaits further momentum.

Context: Why $2.05 Support Matters

The move came as traders continued to rotate risk among major crypto assets. However, while other areas of the market found buyers, XRP lagged behind — suggesting that the drop was not just an overall position adjustment, but a specific XRP-targeted cleanup.

The breakout of the $2.05 support was the trigger. Once this critical level gave way, the volume measure skyrocketed confirming that the drop was driven by automatic liquidations, not active seller input. This “recovery followed by stagnation” behavior is exactly what happens after intense clean-up events: the price reacts when forced selling ends, but continuity depends on new buyers—or sellers in distress trying to walk away with smaller losses.

Post-crash technical structure: support and resistance in focus

Technical analysis is now simple and defined:

Support: $1.93 as the first level, followed by $1.91 as the clearing zone (the previous intraday low). If this level gives way, the next psychological support is $1.85.

Resistance: $1.95 as the immediate barrier, but the real test is at $2.05. Reclaiming this level would signal that the drop was primarily a repositioning event. A failure to reclaim $2.05 would keep the short-term pressure going.

What to expect: scenarios for the next moves

Bullish scenario: If XRP sustains the $1.93 mark and reclaims $1.95, traders will look for a gradual recovery towards $2.00. A breakthrough above $2.05 would indicate that testing the volume measure only confirmed a tactical pause — not the start of a downtrend.

Bearish scenario: If XRP loses $1.93, the market is likely to revisit $1.91. A failure of this support would suggest that the post-sell-off “floor” is giving way, leading to a sharper drop.

At press time, XRP is trading at $1.81, down 5.47% in the last 24 hours and volume of $378.58M — data that reinforces continued selling pressure beyond the initial sell-off. Monitoring the volume measure remains critical to differentiate whether new moves represent real sellers’ entry or just the resurgence of automatic positions.