The XRP price recently entered a volatile contraction phase after a sharp drawdown from multi-month highs, leaving traders questioning whether the recent crash The XRP price recently entered a volatile contraction phase after a sharp drawdown from multi-month highs, leaving traders questioning whether the recent crash

How To Trade The XRP Price In The Short Term After The Massive Crash

2026/02/03 01:00

The XRP price recently entered a volatile contraction phase after a sharp drawdown from multi-month highs, leaving traders questioning whether the recent crash represents a distribution top or a structurally valid buying opportunity. With price confined to a clearly defined range and macro pressures still in play, actionable short-term trading requires disciplined structure analysis, risk management, and clarity on key levels rather than guesswork.

Trading XRP Price After The Crash: Structure, Levels, And Range Execution

During the most recent price cycle, XRP fell sharply from early-January 2026 highs near $2.39, breaking below the $2.00 level and printing lows in the $1.58–$1.60 region. That move flushed excess leverage and forced short-term positioning out of the market, creating conditions for consolidation. For traders, this transition is critical because it shifts the playbook from trend-following strategies to range-based execution.

Recent short-term commentary from market analyst Luke Suther helps frame this phase by emphasizing structure over prediction. His technical read aligns with the chart now showing a compressed range, with higher-timeframe resistance still anchored around $1.95–$2.00 while the visible local supply zone sits closer to $1.67–$1.70. On the downside, repeated defenses in the $1.58–$1.60 region highlight where demand continues to stabilize price despite broader uncertainty.

XRP Price massive crash

Trading XRP in this environment requires respecting those boundaries. Long exposure becomes favorable near the lower end of the structure, where consistent reactions indicate that sellers are failing to accelerate momentum. Entries should remain confirmation-based, supported by observable demand, with tight invalidation below support to maintain risk control. 

On the upside, moves into resistance, both the local supply zone and the broader $2.00 region, serve as tactical exit or risk-reduction areas rather than breakout signals. XRP has repeatedly failed to sustain progress through these ceilings, highlighting weak upside conviction. Until price reclaims resistance with meaningful volume, short-term strategies continue to favor mean reversion over trend continuation.

Managing XRP Trades Around Catalysts And Volatility Risk

Because XRP is in compression, Suther believes that external catalysts carry outsized influence. Short-term traders must actively factor these into execution and sizing. Ongoing Epstein-related developments risk undermining institutional confidence, which can pressure broader crypto markets through Bitcoin correlation. Elevated US fiscal risk, including shutdown concerns, increases volatility and makes false breakouts more likely. Any progress or commentary around the CLARITY Act is particularly relevant for XRP and can rapidly shift sentiment, while geopolitical tensions involving Iran remain a wildcard for risk assets.

In practical terms, this means reducing leverage, tightening stops, and avoiding oversized positions ahead of high-risk news windows. Catalyst-driven moves should trigger reassessment, not emotional reaction. A confirmed break above resistance with sustained volume would shift the short-term bias toward continuation, while a loss of the $1.50 support zone would invalidate the current range and reopen downside risk.

Until structure resolves, the most effective way to trade XRP after the crash is disciplined range execution, strict risk control, and patience. 

XRP price chart from Tradingview.com
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