XRP Price Risks 20% Reversal as Sellers Gain Ground

XRP price fell as low as $2.30 on Sunday, January 5, down 7% within the 24-hour timeframe. Recent trading data shows that XRP is witnessing intense sell-side pressure. Is Ripple price at risk of double-digit losses in the week ahead?

XRP Price Retraces 7% as Profit-Taking Begins

XRP price action has experienced downward volatility in the last 24 hours, after a remarkable start to 2025. As the global crypto market rally entered its 5th day, investors began to reshuffle capital across the markets, with the likes of XRP and Shiba Inu (SHIB) witnessing bearish tailwinds.

The TradingView chart above illustrates how XRP prices climbed 25% between December 30 and January 4. But after a 5-day winning streak, early profit-taking signals have emerged as XRP price retraced 7% from $2.50 to $2.33 in the last 24 hours.

With the broader crypto market sentiment still largely positive, recent declines in XRP transaction volumes suggest traders could be rotating gains towards other assets.

CryptoQuant Data Signals Growing Sell-Side Pressure

Failure to breach the $2.50 resistance on January 4 has dampened bullish momentum within the XRP markets over the last 24 hours. However, derivatives markets data show active holders ramped up sell-side pressure since January 2.

Indicatively, CryptoQuant’s Taker Buy/Sell ratio tracks and compares the volume of buy orders to sell orders executed at current market rates. Taker Buy/Sell ratio values below 1 signal bearish dominance, where sellers exiting at current prices outpace willing buyers.

The chart above shows that XRP Taker Buy/Sell ratio fell as low as 0.93 on Sunday, January 5, signaling that sell order volumes have outpaced demand in each of the 3 previous trading days. This evidently set the stage for the 7% price dip experienced in the last 24 hours.

If this shortfall in market demand persists relative to supply, XRP prices could face additional downside risks in the week ahead.

XRP Price Forecast: Bulls Could Regroup at $2.20 Support Level

XRP’s recent 7% price dip has been driven by a rapid profit-taking frenzy, with the Taker Buy/Sell ratio dropping to 0.93 as of January 5. This indicates a consistent dominance of sell-orders over buy-orders in the past three trading days, leading to intensified downward pressure.

If this imbalance between supply and demand persists, XRP could face further declines in the short term.

Trading volumes have been gradually decreasing, signaling weak participation from both buyers and sellers.

The Relative Strength Index (RSI) is trending downward at 53.69, suggesting more downside potential before approaching oversold territories.

In terms of short-term XRP price forecasts, immediate support lies at $2.27, which aligns with the lower Bollinger Band. A breach below that key XRP support level could extend the reversal toward $1.85.

On the upside, the recent peak at $2.50, which aligns with the middle Bollinger Band, acts as immediate resistance.

A sustained recovery above this level could pave the way for XRP to retake the $3 mark.

If XRP rebounds from $2.20 and buyers regain dominance, the price could climb back toward $2.35, and a breakout above $2.52 would invalidate the bearish outlook. However, if selling pressure continues and XRP loses $2.20 support, the next leg down to $1.85 could materialize quickly.