XRP price prediction is back in focus after XRP traded near $1.97 on Tuesday after a sharp move lower broke the token out of its recent consolidation range, signaling a shift in short-term market structure. The decline followed a failure to hold above the $2.05–$2.06 area, a zone that had acted as near-term support through recent sessions. Once that level gave way, selling accelerated, pushing XRP briefly to a local low around $1.91.

?XRP is trading near $1.97 after a sharp breakdown from its prior consolidation range, with price action showing signs of stress despite a short-term stabilization attempt.

After the flush, #XRP rebounded modestly, recovering into the $1.93–$1.95 area.

Get in on the action… pic.twitter.com/pAMAlZVF8o

— Skipper | XRPL (@skipper_xrp) January 19, 2026

The move matters for market participants because it reflects a clear loss of momentum after a period of relative stability. XRP had spent several days trading in a narrow range above $2.00, and the breakdown suggests sellers regained control as broader crypto markets showed mixed conditions.

Breakdown Driven by Heavy Selling Activity

Market data indicates the decline was abrupt rather than gradual. XRP saw a sharp expansion in downside momentum as it slipped below $2.05, accompanied by a significant spike in trading volume. Volume rose more than 150% during the sell-off, pointing to active liquidation and forced positioning rather than routine profit-taking.

Source: TradingView

Following the initial drop, XRP staged a modest rebound into the $1.93–$1.95 range. However, that recovery stalled well below the former support zone. The failure to reclaim $2.05 reinforced the technical shift, with prior support now acting as overhead resistance. This behavior is often viewed by traders as confirmation that the short-term trend has turned defensive.

Stabilization Attempts Fall Short

After the rebound attempt faded, XRP entered a period of tight consolidation. Price action narrowed around the $1.93–$1.94 area, suggesting that immediate selling pressure had eased. At the same time, the lack of follow-through buying highlighted continued hesitation among market participants.

While XRP briefly pushed higher on shorter time frames, it remained capped below its previous trading range. Cooling volume following the breakdown supports the view that the market has entered a pause as traders reassess exposure after the volatility spike.

Broader Context for XRP

Crypto trader Owen believed that we are seeing consistent positive inflows for XRP Spot ETF again since the Jan 7th sell-off. Also, XRP’s recent weakness comes after a strong performance earlier in the cycle, when the token benefited from improving sentiment around Ripple’s legal standing and renewed institutional interest in blockchain-based payments. Periods of consolidation and sharp resets have been common across large-cap altcoins as liquidity rotates and traders adjust risk.

? $XRP just saw its first outflow in weeks.

Institutional flows are telling a mixed story. Despite the price chop, we are seeing consistent (but small) positive inflows again since the Jan 7th sell-off.

The data shows institutions are accumulating, not dumping. #CryptoNews pic.twitter.com/kkieUFLiLm

— Owen (@OneOwenn) January 19, 2026

Similar breakdowns have been observed across the crypto market in recent weeks, particularly when key technical levels fail during low-conviction environments. These moves often reflect positioning shifts rather than changes in long-term fundamentals.

Implications for the Market

At the time of writing, XRP was down roughly 3.9% over 24 hours, with a market capitalization near $120 billion. While price has stabilized for now, the inability to recover former support suggests caution remains warranted in the short term.

Until XRP can reclaim and hold above the $2.05–$2.06 area, market structure points to continued uncertainty. For now, the recent move underscores how quickly sentiment can shift when key levels break, whatever in major cryptocurrencies or altcoins.