XRP fell to $2.27 after breaking below $2.32 support, but a high-volume flush to $2.21 drew bids and stabilized the move – leaving traders focused on whether the rejection can regain $2.31-$2.32 or if the market remains stuck in a descending channel.
News background
XRP traders are weighing a short-term split in spot price against a longer-term bullish setup on the XRP/BTC ratio.
Chartist “The Great Mattsby” said that XRP/BTC is close to breaking above the monthly Ichimoku cloud for the first time since 2018, a move that historically signals that XRP is positioned to outperform bitcoin if confirmed. The setup is attracting attention as narratives of rotation across assets begin to re-emerge early in the year, even as spot markets remain sensitive to pockets of liquidity and stop-driven moves.
The relative strength matters because XRP’s recent selloff came with evidence of forced selling rather than a slow bleed — the kind of move that often resets positioning and creates a cleaner technical base if buyers can hold key levels.
Technical analysis
XRP fell 5% during the 24-hour period ending on January 7th at 02:00, down from $2.39 to $2.27 after losing $2.32 support and extending a descending channel that has limited recent rebounds.
The key event took place at 4:00 PM on January 6, as volume rose to 256.3 million (142% above 24-hour SMA) and price posted a session low of $2.21. This rise behaved like a capitulation-style flush: aggressive selling hit the band, but the follow-through failed to push the market significantly below $2.21, suggesting that demand absorbed the move.
From there, XRP tried to recover, but stalled near $2.31, reinforcing this zone – along with the breached $2.32 level – as the first meaningful band of resistance. The inability to regain this range keeps the short-term structure bearish, even if the market shows signs of stabilizing after the high-volume low.
Short-term action suggests that the base is trying to form. The 60-minute structure showed multiple defenses of the $2,258-$2,260 range, with higher lows developing after the 1:33 a.m. low at $2,257. Buying volume was concentrated on pushing higher, while pullbacks came on lighter activity – a constructive look, but still inside a broader downtrend until $2.31-$2.32 is regained.
Price action overview
- XRP fell from $2.39 to $2.27, breaking below $2.32 support
- The session did print at $2.21 amid a volume increase of 256.3 million. (142% above average)
- Recovery attempts have repeatedly stalled near $2.31, keeping the descending channel intact
- Intraday stabilization formed around $2,258-$2,260, with buyers defending the range multiple times
What traders should know
The trade is clean right now: $2.21 is the line and $2.31-$2.32 is the gate.
- If $2.21 holds and XRP can regain $2.31-$2.32, the move starts to look like a high-volume shakeout followed by an attempt to resume the trend – opening the way back towards $2.39, where the overhead supply from the breakdown sits.
- If $2.21 fails, the capitulation slave ceases to be a floor and becomes a trigger. That will likely invite another wave of liquidation-style selling into the next demand pocket (which traders will typically map using past consolidation zones and market structure rather than a single indicator).
The second layer to watch is XRP/BTC: the monthly Ichimoku setup circulated by Mattsby is a signal of relative strength, not a spot price guarantee – but if XRP/BTC confirms the breakout, it increases the odds that declines in XRP will be bought more aggressively than declines in bitcoin, especially during risk-on rotation windows.
