XRP Drops to $2.05 as Investors Liquidate Leverage Positions
Ripple (XRPUSD) fell 1.15% to $2.05 in 24h as investors liquidated positions in the latest transaction round in the cryptocurrency market. Trading details across crypto exchanges showed that XRP bearish move occurred as trading volume plunged by 20% to $1.24 billion on Sunday.
This left Ripple’s market value at about $125 billion at the time of writing, reporting about 2% weekly price depreciation. XRP saw an extreme 8,700% long/short liquidation ratio near $2 with $522K longs liquidated vs $6K shorts.
The $2 level has become a magnet for liquidations, with every rally above it met by cascading margin calls. This creates self-reinforcing downward pressure as positions get stopped out.
Supporting bullish outlook, the proposed U.S. Clarity Act could allow XRP ETFs to operate like bank accounts but details remain unclear.
While long-term bullish for institutional adoption, near-term uncertainty about tax/operational implications caused hesitation. ETF inflows slowed to $12.84 million in January vs $243 million peak in Nov 2025.
Technical traders reported that XRP closed below the 50% Fibonacci retracement level of $2.09 and 30-day average of $2. The MACD histogram turned negative with RSI at 50.45 signalling lost momentum.
XRP’s dip reflects a perfect storm of liquidations amplifying technical weakness, compounded by regulatory hesitation, crypto analysts said. While whale accumulation in a 25K new wallets and ETF potential provide long-term support, the $2.04-$2.10 zone is critical to prevent deeper correction, according to crypto market analysts.
The market is weighing whether XRP can hold the 61.8% Fib level at $2.02 on closing basis, adding that a break below could see algorithmic traders target liquidity pools near $1.95. Traders noted that XRP’s institutional adoption accelerates with key developments, though price consolidation persists.
Meanwhile, Evernorth, an XRP-focused treasury firm, announced plans for a Q1 2026 IPO to simplify institutional access to XRP. Its model eliminates custody/compliance hurdles by letting investors gain exposure via public equity instead of direct token ownership.
Crypto analysts see this as a bullish development for XRP because it creates a regulated on-ramp for institutions wary of crypto complexities, potentially increasing demand.
However, success hinges on IPO market reception and broader crypto sentiment. XRP’s institutional and regulatory foundations are strengthening, yet price action remains muted amid broader market consolidation.
Ripple received preliminary Electronic Money Institution (EMI) license approval from Luxembourg’s CSSF and UK FCA registration. This enables expanded payment services and RLUSD stablecoin integration with partners like LMAX Group.
Spot XRP ETFs now hold 803.78 million XRP worth $1.52 billion, with net weekly inflows surging 47% to $56.83 million. Analysts note sustained accumulation could tighten supply, though price remains range-bound near $2.05. MTN Nigeria Rallies to Record High on Renewed Investor Confidence
