XRP is currently fighting to reclaim the $2 level after a sharp breakdown pushed the cryptocurrency toward $1.85. On January 18, leveraged traders experienced more than $5 million in forced liquidations as macroeconomic tensions surrounding 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. Exchange liquidation metrics indicated a major wave of forced closures hitting long positions across major platforms.
Binance alone accounted for approximately $1.05 million of the long liquidations.
The catalyst for this market movement stemmed from geopolitical headlines rather than purely technical factors.
Media outlets reported that European capitals were considering tariffs worth up to €93 billion ($107.7 billion) in response to U.S. pressure regarding Greenland. These potential tariffs could restrict American companies' access to the EU market.
Bitcoin's drop from above $95,000 to below $93,000 further amplified the selloff.
In the case of XRP, this pressure rapidly translated into forced selling as leveraged long positions were liquidated within a falling market.
Why It Matters: Recovery Faces Resistance
XRP is now trading around $1.95, hovering just below the psychological $2 mark, which has become a critical short-term momentum pivot.
The daily chart indicates a clear rejection from the recent rebound high near $2.40, followed by an aggressive selloff that largely erased the breakout attempt.
Price action continues to trade below major moving averages, with sellers actively defending the $2.20–$2.40 supply zone. Buyers have established a visible demand floor near $1.85, which has held firm despite recent volatility.
For bulls, reclaiming the $2.10–$2.20 range represents the initial step toward recovery. Conversely, a further breakdown toward $1.85 remains a significant risk if this level fails to hold.