NewsBTC
Jan 20, 2026
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XRP Faces $5M Long Liquidations Amid Volatile Market Conditions

XRP is attempting to reclaim the $2 mark after a decline to $1.85. The market remains pressured due to macroeconomic uncertainty, with volatility amplified by leverage in the derivatives market.

  • A CryptoQuant report highlights significant forced liquidations for leveraged XRP traders, particularly on January 18.
  • Long position liquidations exceeded $5 million, with Binance accounting for $1.05 million, indicating its role in XRP's short-term volatility.

Macro Factors Impacting XRP

  • The liquidation spike was influenced by macroeconomic factors, including geopolitical tensions and potential trade-war actions between Europe and the US.
  • These events are perceived as liquidity threats, prompting traders to reduce exposure, impacting high-beta assets like crypto.
  • Bitcoin's drop from above $95,000 to below $93,000 increased pressure across altcoins.

XRP Technical Analysis

  • XRP is trying to stabilize within the $1.85–$2.00 range after a selloff from $2.40.
  • The price is currently around $1.97, below the psychological $2 level.
  • Market structure shows downward pressure with prices trading below major moving averages.
  • Sellers are defending the $2.20–$2.40 region, while buyers are active near $1.85, creating a demand floor.
  • Reclaiming $2.10–$2.20 is crucial for recovery; otherwise, a move toward $1.85 is possible.