XRP is fighting to reclaim the $2 level after a sharp breakdown pushed the cryptocurrency toward $1.85, while leveraged traders suffered more than $5 million in forced liquidations on Jan. 18 as macroeconomic tensions over potential European tariffs triggered a synchronized selloff across digital assets.
What Happened: Leverage Flush Hits XRP Longs
A CryptoQuant report documented one of January's most painful sessions for leveraged XRP traders, with exchange liquidation metrics showing a major wave of forced closures hitting long positions across major platforms.
Binance accounted for roughly $1.05 million of the long liquidations alone.
The trigger came from geopolitical headlines rather than technical factors.
Media reported that European capitals were considering tariffs worth up to €93 billion ($107.7 billion) in response to U.S. pressure over Greenland, potentially restricting American companies' access to the EU market.
Bitcoin's drop from above $95,000 to below $93,000 added fuel to the selloff.
In XRP, that pressure quickly turned into forced selling as leveraged longs were liquidated into a falling market.
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Why It Matters: Recovery Faces Resistance
XRP now trades around $1.95, hovering just below the psychological $2 mark that has become a short-term momentum pivot.
The daily chart shows a clear rejection from the recent rebound high near $2.40, followed by an aggressive selloff that erased most of the breakout attempt.
Price continues to trade under major moving averages, with sellers defending the $2.20–$2.40 supply zone aggressively. Buyers have formed a visible demand floor near $1.85 that has held through recent volatility.
For bulls, reclaiming $2.10–$2.20 represents the first step toward recovery. Otherwise, another breakdown toward $1.85 remains a valid risk.
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