XRP fell to $2.12 after breaking below a critical support zone, raising the probability of a deeper correction as sellers regain control following a failed breakout from a bullish descending triangle pattern.
What Happened: Breakdown Below Support
XRP declined 2.85% to approximately $2.12 on Jan. 9, losing the $2.05-$2.10 support zone that previously served as a base for upward continuation.
The breakdown followed a failed attempt to break out from a bullish descending triangle formation, which triggered accelerated selling pressure once upside confirmation did not materialize.
The 7-day Relative Strength Index stands at 61, indicating neither oversold conditions nor a technical setup for a momentum-based bounce. This leaves room for additional downside if sellers maintain pressure below nearby support levels.
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Why It Matters: Critical Levels
The immediate support level to watch is $2.02, aligning with the 61.8% Fibonacci retracement.
A sustained close below this level would confirm a breakdown of the current structure and potentially open downside risk toward the $1.80 area, which represents the next major support zone.
On the upside, resistance sits near $2.26, corresponding with the 23.6% Fibonacci retracement. Reclaiming this level would be required to neutralize near-term bearish pressure and stabilize price action, according to technical analysis.
If $2.02 fails to hold, the loss of this key level would likely validate a deeper correction. Bulls must reclaim $2.26 to regain control of the structure.
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