- XRP is holding the $1.95-$1.96 support zone, losing the $2 price tag.
- Loss of $2 flipped the short-term structure bearish after a failed breakout.
- Reclaiming $2.06 on a daily close opens a move toward $2.72.
XRP is locked in a broad weekly compression after another rejection from descending resistance. As per analysts, the current structure is similar to prior consolidation phases, with price holding near the $1.95-$1.96 demand zone.
On the weekly chart, momentum pressure has slowed while price continues to respect the lower trendline. Analyst ChartNerd said that XRP is a few weeks away from a potential bullish MACD cross on the weekly timeframe, a move that last preceded a full-blown rally toward new highs.
The repeated defense of this support band keeps the higher-timeframe structure intact despite recent volatility. As the price remains below the resistance trendline seen in the chart above, a follow-through is yet to materialize.
$2 Loss Resets Short-Term Structure
XRP fell below $2 after failing to hold a breakout attempt earlier this week. Once the price failed to push above $2, sellers stepped in aggressively. The rejection triggered a sharp correction and cleared late long positions, breaking support at $1.972 on strong volume.
The move flipped the short-term structure bearish. Lower highs are now forming below $1.98, and former support has turned into resistance. Analysts see this as a failed breakout followed by a reset.
Key Levels Define the Next Move
The $1.96 level remains critical. As long as it holds, the structure allows for a recovery attempt. A daily close back above $2 would shift short-term control back to buyers and open a grind toward $2.05, the level that restores bullish structure on higher timeframes.
According to an analyst, a stronger signal would come from reclaiming $2.06 on a daily close. Above that, focus shifts to the October breakdown zone near $2.72. Failure to hold $1.96 would expose the $1.90 area, which marks the next support level.
Liquidations Cleared Excess Leverage
Derivatives data shows that the recent crash on January 18 was one of XRP’s largest long liquidation events this month, with total forced closures exceeding $5 million. Binance alone accounted for roughly $1.05 million of those liquidations.
The liquidation wave followed a broader market sell-off triggered by macro headlines tied to the US-EU trade tensions. Bitcoin fell, dragging the wider market lower.
Related: XRP Pulls Back After Early-2026 Rally as Technicals Turn Bearish
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Source: https://coinedition.com/xrp-defends-key-support-as-traders-watch-2-06-reclaim/
