January Surge of XRP Completely Erased - The Mystery Behind the Price Crash

XRP just experienced a brutal trading session at the end of January, when the price plummeted from high resistance levels down to $1.88 in just a few hours, wiping out all the growth gains accumulated over the month. Even more, since that event, the price has continued to weaken and has now touched the level of $1.64 (data updated 2/2/2026), down 13% from the initial crash point. Notably, despite the free fall in price, data from investment funds and institutional capital reveal a completely different picture—a significant divergence between price action and the behavior of large holders.

Weak RSI and MACD Deterioration – Technical Foundations for a Decisive Drop

From a technical standpoint, the price decline was not surprising. Technical indicators have long warned of the weakening momentum. The RSI remained low throughout the rally, indicating that supply was still abundant and buying pressure insufficient to sustain gains. At the same time, MACD showed clear signs of weakening, signaling a lack of genuine bullish confidence from professional traders.

The main cause of the crash was the inability to sustain momentum as the price approached $2.00. This is a key historical resistance zone, and when XRP failed to break through it, anyone holding long positions from lower levels began to sell to lock in profits. This triggered a cascade selling wave, rapidly pushing the price below familiar support levels.

Smart Money Continues Decisive Accumulation During the Drop – Institutional Buy Signals

But here’s where things get interesting. Despite the price disaster on the chart, the smart money and large funds are not panicking. On the contrary, they are taking advantage of this panic to accumulate decisively.

The BitGoal fund recorded an inflow of $3.43 million USD on the day of the drop, demonstrating that institutional players do not see this crash as the end. Total capital flowing into XRP ETFs exceeded $1.36 billion USD by the end of January, indicating a strong shift of institutional funds from traditional assets into XRP.

Whales on the blockchain have also been aggressively accumulating around the $1.88 level—an important support zone identified by technical analysts. Blockchain data shows they are absorbing supply mercilessly, viewing this as a final opportunity to buy before XRP moves toward new highs.

$1.88 Is the Decisive Boundary – The Last Buying Opportunity for Institutions

From a technical and financial perspective, the $1.88 level is seen as the critical boundary between a clean correction and a deeper crash. If this level is decisively broken, traders may witness XRP further decline toward the $1.73 zone, where long-term technical and infrastructural fundamentals will be tested once again.

However, the buying pressure from whales and funds has forced them to hold this floor. Their intense accumulation around $1.88 suggests they believe that as long as this level holds, XRP will find a new launching pad.

Even if the price drops sharply in a single session, the big question remains: Are institutions building positions, or do they know something the market doesn’t? If history of crypto cycles is any guide, this could be a sign that the current price level is a decisive buying opportunity, not a signal to sell.

Note: This content is for market analysis and reference only, not investment advice. Please conduct thorough research before making any trading decisions.