XRP drops below $2, decline halts... Focus shifts to double bottom

Source: BlockMedia Original Title: XRP 2 Dollar Collapse Halted Decline…Focus Shifts to Double Bottom Original Link: XRP is gaining market attention as it enters a technical inflection point in key price ranges. Despite recent sharp declines, a double bottom pattern has formed in the $1.90–$2.00 range, gradually easing downward pressure. This represents the most significant structural change observed in XRP charts over the past few months, raising expectations for a trend reversal beyond a simple rebound.

As of the morning of the 23rd, according to CoinMarketCap, XRP is trading at $1.90, down 1.9% from the previous day. After two strong sell-offs in October and December last year, XRP was pushed below the $2 mark, but further lows appear limited. Notably, during the formation of the second low, trading volume decreased while prices stabilized, indicating that aggressive selling pressure is gradually being exhausted.

Accumulation zone within a falling triangle… Similar to past box-range corrections

Market observers are noting that XRP is consolidating around the $1.90–$2.00 range. Kamran Asgar, a TradingView analyst, commented, “On the weekly chart, XRP is gradually raising its lows within a descending triangle structure,” adding, “The fact that higher lows are forming without a sharp decline in trading volume suggests this is more of an accumulation phase rather than distribution.” He further explained, “If this range holds, it is more likely that the price will continue to compress within this zone rather than experience a sharp short-term drop.”

Historical trends support this interpretation. During the box-range correction in the weekly charts of 2022–2023, similar support levels held, followed by rebounds of 30–40% over several weeks. However, the strength of these rebounds was highly dependent on overall market liquidity and trading volume recovery, suggesting that the current phase could also be influenced by external factors.

Volume increases amid sideways movement… ETF fund outflows are “profit-taking”

Market participation remains active. As of January 22nd, XRP traded between $1.88 and $1.98, with a 24-hour trading volume of approximately $3.27 billion, up 15% from the previous day. Even in ranges lacking clear directional movement, increasing trading volume indicates that buying and selling activities are still lively.

In terms of institutional flows, mixed signals are observed. According to SoSoValue, on January 20th, the US XRP spot ETF experienced a net outflow of $53.31 million in a single day, the largest daily outflow since the product’s launch. DUSTYBC Crypto Market Analyst commented, “This movement follows a period of over $100 million in net inflows,” and assessed, “This is more of a profit-taking move rather than panic selling.”

Key resistance at $2.15–$2.20 to determine future direction

Market traders are divided in their views. Some believe that selling pressure remains dominant above $2.00 and are cautious about the possibility of breaking below support levels. Others point to past instances where XRP fell to $1.38 and quickly recovered, viewing the current trend as a strong defense phase.

The market considers the $2.15–$2.20 range as a critical resistance level for future movements. This zone corresponds to the neckline of the double bottom pattern, and a volume-supported breakout could signal a trend reversal. Whether XRP can defend the $2 mark and which direction it chooses will likely influence mid-term market sentiment and investment strategies.