XRP Drops Hard as Key Zone Breaks During Broad Crypto Sell-Off

XRP slid sharply below key support as a broad crypto sell-off intensified, wiping out leveraged positions, driving extreme oversold signals, and exposing mounting macro and regulatory stress that continues to weigh on digital asset prices.

XRP Breaks Below $2.00 as Selling Pressure Accelerates

At 8:13 p.m., XRP is trading near $1.95 against the U.S. dollar, extending a sharp downside move as broader market conditions weaken. The decline in XRP is unfolding alongside a pullback in total crypto market capitalization, which has slipped to about $3.12 trillion, reinforcing the risk-off tone across digital assets. Price broke decisively lower from a narrow consolidation band near the $2.04–$2.06 area, with a large red candle pushing XRP beneath the lower boundary of its recent range and signaling a clear shift in short-term control toward sellers.

XRP’s short-term price action had been defined by extended sideways trade beneath falling resistance, with multiple attempts to push higher stalling out. That equilibrium ultimately broke lower as support around the mid-$2.00 zone failed, unleashing a swift wave of selling that aligned with the broader market retreat. Volume surged as the breakdown unfolded, highlighting the urgency of the move, before easing as price stabilized modestly off the lows. The failure to reclaim former support reinforces the view that the prior range functioned as a distribution phase rather than a base for renewed upside amid deteriorating market sentiment.

According to data from Coinglass, XRP experienced heavy forced deleveraging over the past 24 hours, with total liquidations reaching about $40.57 million as the sell-off accelerated. Long positions accounted for the vast majority of that figure, at roughly $39.81 million, while short liquidations remained limited near $760,900, underscoring how aggressively bullish exposure was unwound as price broke lower. That broader liquidation wave included a sharp burst of pressure in the most recent hour, when roughly $251,950 in positions were liquidated, led again by long positions near $228,100 compared with about $23,800 in shorts.

At the same time, a mix of geopolitical and regulatory uncertainty has weighed on broader market sentiment. Tensions have escalated between the United States and several European allies over Greenland after President Trump announced plans to impose a 10% import tariff on eight European nations beginning Feb. 1, with a warning that tariffs could rise to 25% by June absent an agreement. The coordinated response from Europe, along with reports of potential retaliatory measures, has added to macroeconomic unease. Domestically, uncertainty has been compounded by the delay of a Senate markup on crypto market structure legislation. Coinbase formally withdrew its support for the proposal, with CEO Brian Armstrong warning that the current framework could harm consumers if rushed forward, while Ripple CEO Brad Garlinghouse echoed concerns about prolonged inaction, arguing that regulatory clarity — even if imperfect — remains preferable to continued uncertainty as the stalled process clouds the policy outlook for digital assets.