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XRP Price Prediction: $70M Liquidated as XRP Tests $1.70 – Is $1.60 Next?

XRP Price Prediction: $70M Liquidated as XRP Tests $1.70 – Is $1.60 Next?

Author:
Cryptonews
Published:
2026-01-31 12:15:59
20
1

XRP just ripped through $1.70, leaving a $70 million trail of liquidated positions in its wake. The surge sent shockwaves through the market, forcing traders to ask one urgent question: is a pullback to $1.60 imminent?

The Liquidation Cascade

That $70 million figure isn't just a number—it's a battlefield. The move triggered a cascade of stop-losses and margin calls, clearing out over-leveraged bets in both directions. It's a brutal reminder that crypto markets don't just climb; they cleanse.

Technical Crossroads

Testing $1.70 puts XRP at a critical technical juncture. The asset is now probing a major resistance zone. Every trader's chart is lit up, watching for a decisive break or a sharp rejection. Momentum is high, but so is the potential for a classic 'buy the rumor, sell the news' retracement.

The $1.60 Question

Talk of $1.60 isn't FUD—it's prudent risk management. After a violent upswing, healthy consolidation is standard. A dip to that level would establish a new, higher support base, potentially setting the stage for the next leg up. It's the market catching its breath.

Broader Market Sentiment

This isn't happening in a vacuum. XRP's move reflects a growing institutional comfort with digital assets—finally seeing them as something beyond speculative casino chips for retail gamblers. The old guard of finance is watching, likely muttering about 'irrational exuberance' from their leather-bound chairs.

Watch the tape, not the hype. Volatility is the only guarantee. A move to $1.60 isn't a failure; it's a feature of a maturing market finding its footing. The real story isn't the price—it's the $70 million lesson in leverage that just printed on the blockchain for everyone to see.

$70 Million in Liquidations Hit Bullish Traders

The latest pullback triggered more than $70 million in XRP futures liquidations, with the majority coming from long positions. In simple terms, many traders were positioned for a rebound, and when price slipped below key levels, forced selling kicked in.

As XRP dropped under nearby support zones, margin calls accelerated the decline. This type of liquidation cascade often creates exaggerated moves, where selling feeds on itself rather than reflecting a sudden change in fundamentals. It also explains why the price struggled to stabilize quickly after the initial dip.

Here are the main points from the liquidation data:

  • Most liquidations came from long positions, which shows traders were still optimistic.
  • Forced selling made the market more volatile, instead of traders taking profits naturally.
  • Leverage is coming down, but it hasn’t been completely cleared from the market yet.

Weak Bitcoin Keeps Risk Appetite Low

XRP’s weakness is part of a bigger trend. Bitcoin’s slow price movement has made the whole crypto market more cautious. When Bitcoin isn’t moving up, traders usually cut back on altcoins, especially those already under pressure.

At the same time, there’s little evidence of aggressive dip-buying. Spot demand appears thin, suggesting many investors are waiting for clearer confirmation before stepping back in. Until overall market confidence improves, XRP is likely to remain sensitive to downside moves.

XRP Technical Picture Points Toward $1.60

On the 4-hour chart, xrp price prediciton is strongly bearish as XRP keeps making lower highs and lower lows, following a clear downward trendline that has limited recoveries since mid-January. The price has dropped below the 1.618 Fibonacci extension near $1.73, drawing focus to lower support levels.

XRP Price Chart – Source: Tradingview

XRP is now just above $1.64, which matches the 2.272 Fibonacci extension. This area might provide a brief pause, but it usually doesn’t hold as a bottom during a strong downtrend. If the price falls below $1.64, it could MOVE toward $1.60 to $1.59, where the 2.618 extension and previous liquidity are found.

Momentum continues to support a bearish outlook. The RSI is still below 40 and moving closer to oversold territory, with no sign of bullish divergence. This points to ongoing weakness instead of a sign that the decline is ending.

For sentiment to improve, XRP needs to move back above $1.75 to $1.78, and then above $1.86. Until that happens, the technical outlook suggests caution, with $1.60 as the next important level to watch on the downside.

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