XRP faced a sharp decline on January 30, trading near $1.75375 after an intraday slide that accelerated during the previous session. The digital asset rebounded modestly from a low near $1.71, stabilizing just above short-term support levels as selling momentum shows early signs of easing. Price action reflects a clear transition from consolidation into a descending phase, with repeated failed attempts to hold above $1.88–$1.90 giving way to accelerating downside toward $1.75–$1.76. While buyers are probing the market near current levels, the technical picture remains cautious as XRP navigates heightened volatility.
Several macroeconomic and geopolitical factors are contributing to the pressure on XRP and broader crypto markets. The nomination of Kevin Warsh as the next Federal Reserve Chair, viewed as a potential signal of sustained hawkish monetary policy, has strengthened the U.S. dollar and pushed risk assets lower. Concurrently, escalating tensions in the Middle East, highlighted by the deployment of a U.S. carrier strike group near Iran, have intensified risk-off sentiment. Investors are seeking safety in cash, amplifying liquidation pressures across digital assets.
Institutional flows have added to the headwinds for XRP. U.S. spot XRP ETFs saw record single-day redemptions, led by significant withdrawals from the Grayscale XRP ETF. These outflows underscore the vulnerability of XRP to coordinated selling in institutional channels. Technical indicators reflect the fragile market posture: the Relative Strength Index (RSI) hovers near 39.7, signaling bearish momentum but hinting at early stabilization from oversold-adjacent levels. The MACD remains negative, though the contraction in the histogram points to slowing downside pressure. XRP trades below both the 50-period and 200-period moving averages, while Bollinger Bands remain expanded, highlighting ongoing volatility.
For traders and investors, XRP’s ability to hold above the recent lows near the lower Bollinger Band and reclaim $1.76–$1.78 could prompt a relief bounce toward the mid-band and nearby moving averages. Failure to stabilize may leave the token exposed to further tests of the lower range, maintaining a bearish near-term bias. Overall, while XRP shows tentative signs of balance, broader macro, geopolitical, and institutional dynamics suggest that caution remains warranted as the market searches for stability.
