January 25, 2026
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XRP drops 4% as traders watch whether $1.88 support holds

Price stabilizes near recent lows after a volatile pullback from above $2.”, — write: www.coindesk.com

XRP drops 4% as traders watch whether $1.88 support holdsPrice stabilizes near recent lows after a volatile pullback from above $2. Jan 25, 2026, 6:03 pm

XRP sank nearly 4% as bitcoin dropped below the $88,000 mark on Sunday, ahead of a busy week with the Federal Reserve’s two-day FOMC meeting starting on Wednesday and major technology players announcing earnings.

News background

  • The consolidation came as spot XRP ETFs recorded their first meaningful weekly outflows since launch, totaling roughly $40.6 million, signaling near-term institutional profit-taking rather than fresh risk-on positioning.
  • There were no negative developments around Ripple or the XRP Ledger during the period.
  • Ripple’s regulatory standing and payments use case remain intact, leaving price action driven primarily by market structure, positioning, and reduced participation rather than fundamentals.

Price action summary

  • XRP edged lower from about $1.92 to $1.90 over the 24-hour period ending Jan. 25, trading within a tight 1.8% range. Price repeatedly tested support near $1.88–$1.89, a level that has now held multiple times since XRP slipped back below $2.00 earlier in the week.
  • The session’s most notable move occurred around 09:00 UTC, when volume briefly surged to 34.5 million tokens as XRP dipped toward $1.89 before bouncing back above $1.90.
  • That move marked a failed breakdown attempt rather than the start of a trend. After the bounce, trading activity faded sharply, with volume collapsing into the close — a sign that both buyers and sellers stepped back.
  • On an intraday basis, XRP attempted a modest rebound towards $1.92 but was rejected quickly, sending the price back towards $1.90. The inability to reclaim higher levels reinforced the broader sideways structure.

Technical analysisFrom a technical standpoint, XRP remains stuck in consolidation rather than trending. The market has carved out a clear base near $1.88, forming what technicians would describe as a triple-bottom support zone. Each test has attracted buyers, but rebounds have been shallow.

Resistance remains layered above price. Near-term selling pressure sits around $1.93–$1.95, while a more significant descending trendline comes closer to $2.10. As long as XRP stays below these levels, upside attempts are likely to be faded.

Volume behavior supports the consolidation view. Participation spikes have coincided with reversals rather than breakouts, and the sharp drop-off in volume into the close suggests indecision, not aggressive accumulation or distribution.

What traders should knowThe key takeaway is that XRP is compressing, not breaking down.

  • Support near $1.88 is holding, indicating sellers are losing momentum rather than accelerating.
  • Volume is drying up, which often precedes a larger move once direction is resolved.
  • ETF outflows reflect rotation and profit-taking, not a loss of confidence in the asset.

For now:

  • A move above $1.95 would signal the start of structural repair toward $2.03–$2.06.
  • A break below $1.85 would invalidate the base and reopen the downside risk.
  • Until then, XRP is likely to remain range-bound, frustrating trend traders but favoring short-term, mean-reversion setups.

In simple terms: XRP isn’t weak enough to break, but not strong enough to run — yet.

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What to know:

  • KuCoin recorded over $1.25 trillion in total trading volume in 2025equivalent to an average of roughly $114 billion per monthmarking its strongest year on record.
  • This performance translated into an all-time high share of centralized exchange volumeas KuCoin’s activity expanded faster than aggregate CEX volumeswhich slowed during periods of lower market volatility.
  • Spot and derivatives volumes were evenly spliteach exceeding $500 billion for the year, signaling broad-based usage rather than reliance on a single product line.
  • Altcoins accounted for the majority of trading activityreinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
  • Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activityindicating structurally higher user engagement rather than short-lived volume spikes.

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Bitcoin slips below $88,000 amid government shutdown risk and ahead of Fed’s first rate decision of the year

(Michael M. Santiago/Getty Images)Bitcoin and major tokens weakened Sunday as markets positioned ahead of the Federal Reserve’s next rate decision and a heavy slate of Magnificent Seven earnings.

What to know:

  • Bitcoin fell below $88,000 in thin weekend trading, extending a weeklong pullback that has left most major cryptocurrencies sharply lower, amid macro and geopolitical tension.
  • Market sentiment remains fragile after more than $1 billion in leveraged crypto positions were liquidated amid recent volatility in currencies and bond markets.
  • Traders are watching potential Japanese yen intervention, US political brinkmanship over a spending bill and a heavy tech-earnings calendar, as the Federal Reserve is expected to keep interest rates unchanged.

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