XRP price plummets over 25% – Can bulls stage a comeback?
Surprisingly, the OBV did not form new lows compared to mid-January, instead hovering just above those higher lows.
- XRP could fall below $2 once again to collect the liquidity built up underneath.
- The OBV showed selling volume was not dominant on the daily timeframe and recovery was possible.
The liquidation cascade earlier today sent Ripple [XRP] to a low of $1.77 on Binance, 43% down from the daily open on the 31st of January.
The 1-day chart showed the past two weeks’ range formation shattered after a daily session close below $2.9, invalidating a bullish idea.
Lows were violently smashed aside — What next?
The drop below $2.9 was spurred by market-wide panic and a liquidation cascade a few hours before the time of writing.
The RSI plummeted below neutral 50 to indicate a shift in momentum — something the price action also clearly highlighted.
Surprisingly, the OBV did not form new lows compared to mid-January. It hovered just above those higher lows, a sign that recent selling volume was not enough to overcome the accumulation of the previous two weeks.
By itself, that was no sign to buy more XRP right away. The H4 chart showed the decline to $1.77 on Binance and the swift bounce higher.
Known as a “dead cat bounce” and based on the tragic idea that anything dropped far enough must bounce, XRP might not be on the path to recovery yet.
Instead, traders and investors can expect another move to the $1.77 level in the coming days to sweep the liquidity that will likely build up. A bullish reversal can be assessed thereafter.
How high can XRP bounce before a retest of the H4 wick?
The 3-month liquidation heatmap showed that the $1.7 area also had a noticeable amount of liquidation levels. A move toward $1.77 might dip slightly lower to collect this liquidity before reversal.
Read Ripple’s [XRP] Price Prediction 2025–26
To the north, the $3.23 level was the next magnetic zone to watch. A move beyond this level would be a sign of an HTF bullish trend.
In the short-term, the $2.46 could be a viable target for XRP in the coming hours. To the south, the $1.92 region was amassing a considerable number of liquidation levels, which the bears are likely to target in the coming days.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
