XRP’s valuation recorded a sharp decline of approximately 5% during the January 29, 2026 trading session, sliding from $1.91 to near the $1.80 mark. According to analyst Shaurya Malwa, this movement was primarily triggered by a broad risk-off sentiment led by Bitcoin’s pullback, which heavily impacted the XRP price and other high-beta tokens across major exchanges.
The slide accelerated significantly once the asset broke through key technical support at $1.87 on heavy volume, effectively erasing the gains accumulated throughout the previous week. Thus, forced selling pressure drove the price to seek liquidity in the $1.78–$1.80 zone, where buyers stepped in to stabilize the technical structure momentarily before the daily close.
However, the modest bounce observed after touching intraday lows lacked significant follow-through from bulls, leaving the overall structure in a defensive phase. Therefore, the XRP price remains below its former support level, which has now flipped into a crucial near-term resistance for any recovery attempt in the coming days.
Critical support levels and the role of institutional liquidity
Market traders have identified $1.80 as the immediate “line in the sand” that will determine the short-term trend’s fate. If this level fails to hold, the downside risk toward $1.73 or even $1.70 increases, opening the door for a deeper and more structural corrective phase for the cryptocurrency during the next several trading sessions.
Moreover, the lack of token-specific headlines suggests that the move is purely technical and highly dependent on global macro sentiment shifts. For this reason, the accumulation strategy of large-scale holders will be tested, as only a sustained daily close above the $1.87–$1.90 range would signal that the recent drop was merely a healthy adjustment within a broader cycle.
Will buyers successfully defend the $1.80 psychological support level?
Furthermore, the current correlation with Bitcoin continues to dictate the pace of operations, leaving technical levels as the only reliable guides for investors right now. If demand at lower levels absorbs the existing supply, the XRP price could attempt a sideways consolidation phase, allowing relative strength indicators to reset after the bearish acceleration experienced throughout the last 24 hours.
Ultimately, the market awaits a signal of institutional strength to invalidate the negative bias currently dominating the price charts. As long as the $1.90 resistance remains unbroken, participants should exercise caution against potential “bull traps,” closely monitoring how the interaction between volume and price action defines whether we are facing a local bearish move or a strategic buying opportunity.
