Greed's Bottomless Pit Causes XRP to Crash from $2.00 - Can $1.77 Save the Rally?

The XRP market has just experienced a tough week. The current price is at $1.45, after retreating from the psychological zone of $2.00 and trading near $1.89 in recent days. This collapse is no coincidence — it is the result of bottomless greed as the price was pushed too quickly, too high without a solid liquidity foundation. Although the long-term structure still has potential for growth, the market is currently facing a strong sell-off wave before any recovery steps can occur.

Bearish Money Flow - Warnings from CMF and MFI

Warning signals appeared early. The Chaikin Money Flow (CMF) indicator has been below the -0.05 threshold in recent weeks, indicating consistent capital outflows. At the same time, the Money Flow Index (MFI) is also concentrated at low levels and struggling to surpass 50, which signals weakening buying pressure.

In the derivatives market, the “risk-off” sentiment is dominating. Traders are gradually pulling back, and buying momentum has completely vanished during recent corrections. The bottomless greed of community members wanting to buy at the top has been “taught” a costly lesson by the market.

Critical Threshold $1.77 - The Final Liquidity Zone

The $1.77 level plays an extremely important role in the current context. It is the lowest swing bottom on the 3-day timeframe, and it has not been broken. More importantly, this level is within the demand zone of the week, where smart investors have accumulated positions previously.

As long as $1.77 holds, the upward trend remains valid. However, if this threshold is broken, the entire bullish structure built since the beginning of the month will be completely invalidated. At that point, XRP will fall into an unexplored zone, and investors will need to look for new support levels below.

Liquidity Sweep Scenario - Opportunities After the Downtrend

A large amount of liquidation leverage is concentrated around the $1.80 zone, just slightly above the $1.77 threshold. This is a liquidity trap that market makers could trigger to force leveraged traders into a sell-off.

XRP is very likely to dip a bit deeper to sweep this liquidity zone before reversing. However, the key point is whether the price breaks below $1.77 or not. If this sweep stops before $1.77 and refuses to go deeper, it could trigger a strong short squeeze, with bottomless greed returning as the price rebounds around the $2.05 zone.

The current correction does not seem to be fully over, and the biggest question is where this decline will stop.

Trading Strategy for Patient Investors

Optimistic investors’ hopes depend on holding the $1.77 level at all costs. It is a critical threshold.

The recommended strategy is to be patient and vigilant. Watch for the candle wick sweep into the $1.80 zone to see if it can clear the leverage trap. If this sweep does not break below $1.77, a rebound opportunity toward the $2.05 zone is highly feasible. However, remember that bottomless greed has harmed many traders — place your orders at the liquidity trap around $1.80 and wait for the price to recover above $2.00 before considering long-term positions.

News and research information are for reference only and do not constitute investment advice. Please read carefully and manage risks prudently before making trading decisions.