XRP Price Prediction: $1.80 Support Holds As Volume Explodes 184% On Bounce Attempt

XRP Price Prediction: $1.80 Support Holds As Volume Explodes 184% On Bounce Attempt

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XRP Price Prediction
  • XRP bounces 2.29% to $1.8755 after defending the $1.80 horizontal support that has held through five separate tests since October.
  • Trading volume explodes 184% to $5.74 billion as the support test triggers aggressive positioning from both bulls and bears.
  • Options volume surges 266% as traders pay for volatility protection, signaling expectations of a decisive move from current levels.

XRP price today trades near $1.8755 after bouncing from the $1.80 demand zone that has anchored corrections since October. The recovery comes with explosive volume growth, suggesting that traders view this level as a decisive battleground for the next directional move.

Volume Explodes At Critical Support

XRP Derivative Analysis (Source: Coinglass)

Trading activity surged as price tested the $1.80 floor. Futures volume jumped 184.16% to $5.74 billion, one of the largest single-day increases in recent weeks. Options volume climbed even more dramatically at 266.32% to $5.58 million.

The volume spike at established support indicates that both buyers and sellers are engaged. Bulls defend the level while bears attempt to force a breakdown. Such contested zones typically resolve with forceful moves once one side exhausts.

Spot Flows Turn Negative Despite Bounce

XRP Netflows (Source: Coinglass)

Exchange flow data shows selling pressure beneath the surface. Coinglass recorded $4.95 million in net outflows on January 26, meaning coins are moving onto exchanges rather than into private wallets.

The flow direction contradicts the price bounce, suggesting that some holders used the rally to reduce exposure. When spot flows diverge from price action, it often creates conditions for retest of the contested level.

The outflow follows several days of positive flows earlier this week. The reversal may indicate that confidence in the $1.80 support is weakening among larger holders even as price defends the level.

Derivatives Show Aggressive Positioning

Open interest declined 2.28% to $3.28 billion as the volatility flushed leveraged positions. Over the past 24 hours, $12.66 million in long positions were liquidated compared to $1.21 million in shorts, a 10:1 ratio favoring bears.

The long liquidation dominance shows that leveraged bulls got caught during the dip toward $1.80. Those forced exits reduce overhead supply from weak hands but also signal that buying conviction has weakened.

The long/short ratio sits at 0.95, slightly favoring shorts. Top traders on Binance maintain 3.09 long/short ratio, suggesting larger accounts remain positioned for recovery despite retail capitulation.

Options open interest rose 3.81% to $71.64 million, confirming that traders are actively positioning for the next move rather than reducing exposure.

$1.80 Support Faces Fifth Test

XRP Price Action (Source: TradingView)

On the daily chart, XRP has tested the $1.80 horizontal support five times since October. Each test has attracted buyers who defend the level, but the repeated visits suggest the floor is weakening.

Price remains below all four EMAs, confirming the bearish structure:

  • Immediate resistance: $1.9729 (20 EMA)
  • SAR resistance: $1.9979
  • Secondary resistance: $2.0272 (50 EMA)
  • Major resistance: $2.1540 (100 EMA)
  • Trend resistance: $2.2863 (200 EMA)
  • Critical support: $1.80
  • Breakdown target: $1.60

The Parabolic SAR sits at $1.9979, just above $2.00. A close above this level would flip the indicator bullish and signal that momentum has shifted.

Intraday Momentum Improves

XRP Price Dynamics (Source: TradingView)

Shorter timeframes show the bounce dynamics. On the hourly chart, XRP has recovered from $1.83 lows while forming a potential higher low above the descending trendline.

RSI climbed to 51.75, crossing above the neutral 50 level for the first time since the selloff began. MACD shows a bullish crossover forming, with the histogram turning positive.

The descending trendline from January highs now sits near $1.90 to $1.92. A break above this level would confirm that short-term momentum has shifted bullish and target a test of $2.00.

Outlook: Will The Fifth Test Hold?

The setup presents elevated risk in both directions. Volume explosion and options surge signal that resolution is imminent. The $1.80 support has held five times, but each test weakens the floor.

  • Bullish case: Price breaks the descending trendline and closes above $1.90. Reclaiming $2.00 confirms the support held and targets the 50 EMA at $2.02.
  • Bearish case: A sixth test of $1.80 fails to attract sufficient buying. A daily close below $1.80 confirms the breakdown and targets $1.60 with acceleration likely given the volume at stake.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.