XRP is attempting to stabilize around the $1.88 to $1.90 area after a volatile January stretch. CoinDesk highlighted $1.88 as a level traders were watching closely following a pullback from roughly $1.92 toward $1.90 in a tight range session.
Earlier in the month, a liquidation-driven slide that pushed XRP below $2, with price dropping from around $2.06 to the low $1.90s as leveraged positions were forced out. That sequence matters because strong liquidation events often mark the point where leverage resets and price becomes more sensitive to spot demand.
A bottom often becomes more likely when open interest stops climbing and starts falling, because crowded directional bets unwind. FXStreet reported XRP open interest trending lower since a January peak, alongside other risk-off indicators.
Coinglass data also shows XRP derivatives markets remain large, but liquidation prints and open interest give a live view into whether the market is still being forced into exits. When open interest declines while spot holds support, it can be consistent with a de-risking phase that reduces the probability of another cascade.
FXStreet noted that the percentage of XRP held in profit has fallen toward levels seen in early January, framing it as a sign of investor capitulation. Bottoming processes often include this type of emotional reset, where weaker hands exit and the remaining supply becomes less reactive.
A bottom is rarely a single candle. It is more often a compression phase that follows a sharp move. Several recent sessions have shown XRP repeatedly probing the same support area with only modest follow-through, which can be interpreted as absorption if the level continues to hold.
FXStreet cited a drop in XRP Ledger active addresses to about 49,500, which points to cooler on-chain participation. The Block’s XRP Ledger activity dashboard provides a second reference point for daily active address trends.
A durable bottom typically improves when activity and demand indicators stop falling. If address activity continues to trend down, rebounds can remain fragile and heavily dependent on broader market sentiment.
Short-term technical commentary continues to emphasize that XRP is struggling to reclaim key levels above $1.90. FXLeaders described a descending trendline pressure and difficulty regaining moving averages, suggesting sellers still have influence unless price breaks and holds above nearby resistance.
Reuters reported that the SEC ended its lawsuit against Ripple and that Ripple would pay a $125 million fine, with appeals dropped, effectively closing the long-running case. That reduces one major overhang, but it does not automatically create new demand.
Some of the cleanest medium-term tailwinds for narrative traders are regulated product launches. Franklin Templeton announced the launch of a Franklin XRP ETF, and Yahoo Finance reported on a Bitwise spot XRP ETF launch in late 2025. The market impact depends on sustained flows, but the existence of more regulated rails can change long-run positioning behavior.
These zones are framed as decision points, not certainties.
For daily reference levels and recent ranges, Investing.com’s XRP historical data provides a clean view of the late-January highs and lows.
If XRP continues to defend the $1.88 to $1.84 area while open interest keeps drifting lower, price can grind sideways and then push higher on improving risk sentiment. In this case, the first meaningful test is the $1.96 to $2.05 zone. A reclaim can shift the market from survival mode into a recovery structure.
If on-chain activity stays soft and broader crypto risk appetite remains mixed, XRP can remain range-bound. This scenario typically produces sharp intraday moves that reverse quickly, especially around leverage flushes and headline catalysts. In this environment, repeated tests of support become the main risk, because every retest can weaken the level.
If XRP breaks below the late-January lows with rising liquidations and open interest stops falling, the probability increases that the move is not a completed bottom but a continuation. In this case, attention usually shifts to identifying the next demand pocket where spot buyers consistently step in.
A “bottom call” is less about conviction and more about invalidation. For XRP, invalidation is typically a sustained break below the support band combined with renewed leverage build-up that increases liquidation risk.
Macro risk can also dominate. XRP tends to trade as a high-beta asset when markets are risk-off, which means broader crypto drawdowns can overpower asset-specific positives.
XRP shows early ingredients of a bottoming attempt, including post-liquidation stabilization and signs of leverage cooling. Confirmation is still missing because on-chain activity remains softer and the trend structure has not reclaimed key resistance.
The cleanest way to frame the outlook is scenario-based: a durable base strengthens if XRP holds the $1.88 to $1.84 zone while reclaiming $1.96 to $2.05, and it weakens if support breaks with renewed liquidation pressure.
The post Has XRP Bottomed? Key Signals, Catalysts, and Scenarios to Watch appeared first on Crypto Adventure.
Also read: Morning Update — 26 January 2026
