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<a href="https://yellow.com/asset/xrp" rel="noopener noreferrer nofollow">XRP</a> is fighting to reclaim the $2 level after a sharp breakdown pushed the cryptocurrency toward $1.85, while leveraged traders suffered more than $5 million in forced liquidations on Jan. 18 as <a href="https://yellow.com/news/bitcoin-slides-as-trump-greenland-tariff-threats-trigger-risk-off-market-move" rel="noopener noreferrer nofollow">macroeconomic tensions over potential European tariffs</a> triggered a synchronized selloff across digital assets.
<h2 id="what-happened-leverage-flush-hits-xrp-longs">What Happened: Leverage Flush Hits XRP Longs</h2>
A CryptoQuant report <a href="https://cryptoquant.com/analytics/query/695bb71fcf8c0063d28f7205?v=695bb7536f89e81772a356e2" rel="noopener noreferrer nofollow">documented</a> one of January's most painful sessions for leveraged XRP traders, with exchange liquidation metrics showing a major wave of forced closures hitting long positions across major platforms.
Binance <a href="https://www.newsbtc.com/xrp-news/xrp-longs-get-wiped-binance-leads-5m-liquidation-wave/" rel="noopener noreferrer nofollow">accounted</a> for roughly $1.05 million of the long liquidations alone.
The trigger came from geopolitical headlines rather than technical factors.
Media reported that European capitals were considering tariffs worth up to €93 billion ($107.7 billion) in <a href="https://yellow.com/news/gold-soars-to-dollar4690-record-as-bitcoin-plunges-on-trumps-greenland-tariff-gambit" rel="noopener noreferrer nofollow">response to U.S. pressure over Greenland</a>, potentially restricting American companies' access to the EU market.
<a href="https://yellow.com/asset/btc" rel="noopener noreferrer nofollow">Bitcoin</a>'s drop from above $95,000 to below $93,000 added fuel to the selloff.
In XRP, that pressure quickly turned into forced selling as leveraged longs were liquidated into a falling market.
Also Read: <a href="https://yellow.com/news/cardano-founder-accuses-ripple-ceo-of-surrendering-to-sec-in-regulatory-fight" rel="noopener noreferrer nofollow">Cardano Founder Accuses Ripple CEO Of Surrendering To SEC In Regulatory Fight</a>
<h2 id="why-it-matters-recovery-faces-resistance">Why It Matters: Recovery Faces Resistance</h2>
XRP now trades around $1.95, hovering just below the psychological $2 mark that has become a short-term momentum pivot.
The daily chart shows a clear rejection from the recent rebound high near $2.40, followed by an aggressive selloff that erased most of the breakout attempt.
Price continues to trade under major moving averages, with sellers defending the $2.20–$2.40 supply zone aggressively. Buyers have formed a visible demand floor near $1.85 that has held through recent volatility.
For bulls, reclaiming $2.10–$2.20 represents the first <a href="https://yellow.com/news/why-xrps-declining-bubble-risk-may-signal-better-recovery-conditions-ahead" rel="noopener noreferrer nofollow">step toward recovery</a>. Otherwise, another breakdown toward $1.85 remains a valid risk.
Read Next: <a href="https://yellow.com/news/aster-hits-all-time-low-at-dollar061-despite-strategic-buyback-activation" rel="noopener noreferrer nofollow">ASTER Hits All-Time Low At $0.61 Despite Strategic Buyback Activation</a>

XRP Traders Lose $5M In Liquidations As EU Tariff Fears Spark Crypto Selloff

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