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XRP Defends Key Support as Traders Watch $2.06 Reclaim

XRP Defends Key Support as Traders Watch $2.06 Reclaim

CoinEditionCoinEdition2026/01/20 09:03
By:CoinEdition

XRP is locked in a broad weekly compression after another rejection from descending resistance. As per analysts, the current structure is similar to prior consolidation phases, with price holding near the $1.95-$1.96 demand zone.

On the weekly chart, momentum pressure has slowed while price continues to respect the lower trendline. Analyst ChartNerd said that XRP is a few weeks away from a potential bullish MACD cross on the weekly timeframe, a move that last preceded a full-blown rally toward new highs.

XRP Defends Key Support as Traders Watch $2.06 Reclaim image 0 Source: X

The repeated defense of this support band keeps the higher-timeframe structure intact despite recent volatility. As the price remains below the resistance trendline seen in the chart above, a follow-through is yet to materialize.

XRP fell below $2 after failing to hold a breakout attempt earlier this week. Once the price failed to push above $2, sellers stepped in aggressively. The rejection triggered a sharp correction and cleared late long positions, breaking support at $1.972 on strong volume.

The move flipped the short-term structure bearish. Lower highs are now forming below $1.98, and former support has turned into resistance. Analysts see this as a failed breakout followed by a reset.

The $1.96 level remains critical. As long as it holds, the structure allows for a recovery attempt. A daily close back above $2 would shift short-term control back to buyers and open a grind toward $2.05, the level that restores bullish structure on higher timeframes.

According to an analyst, a stronger signal would come from reclaiming $2.06 on a daily close. Above that, focus shifts to the October breakdown zone near $2.72. Failure to hold $1.96 would expose the $1.90 area, which marks the next support level.

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Derivatives data shows that the recent crash on January 18 was one of XRP’s largest long liquidation events this month, with total forced closures exceeding $5 million. Binance alone accounted for roughly $1.05 million of those liquidations.

XRP Defends Key Support as Traders Watch $2.06 Reclaim image 1 Source: CryptoQuant

The liquidation wave followed a broader market sell-off triggered by macro headlines tied to the US-EU trade tensions. Bitcoin fell, dragging the wider market lower.

Related: XRP Pulls Back After Early-2026 Rally as Technicals Turn Bearish

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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