XRP (CRYPTO: XRP) dropped 2% over the past 24 hours as Glassnode warns the current market setup matches February 2022—right before XRP crashed 60%.

The Warning Sign From 2022 Is Flashing Again

Glassnode flagged a troubling pattern: investors who bought XRP in the last 1 week to 1 month are now paying less than those who purchased 6-12 months ago.

That creates psychological pressure on longer-term holders sitting on losses. 

When newer buyers enter at lower prices than earlier investors, it signals the trend is deteriorating.

This exact pattern appeared in February 2022 when XRP traded around $0.80. What followed was a 60% crash to $0.30 as holders gave up during the broader market collapse.

The current setup mirrors that structure, with one critical difference: the price level is higher but the on-chain dynamics are identical.

Chart Shows Failed Rally And Weakening Structure

XRP’s $2 level has triggered between $0.5 billion and $1.2 billion in weekly realized losses every time it gets tested.

That massive loss-taking shows a concentration of holders with cost bases near this price. If $2 breaks, those holders face the decision to cut losses or hold through further declines.

From a technical perspective, XRP rallied from $1.72 in December to $2.44 in mid-January, then gave back most of those gains in days.

The token now trades below all major moving averages: 20-day at $2.0413, 50-day at $2.0641, 100-day at $2.1875, and 200-day at $2.3107.

The descending trendline from July’s $3.66 peak continues capping rallies, currently sitting around $2.6-2.7.

Moreover, Volume data shows heavy trading between $3.00-3.60, representing trapped buyers who will likely sell on any rally that reaches those levels.

Inflows Can’t Stop The Selling

XRP saw $13.09 million in netflows as of January 20th, yet the price still dropped 2.5%.

When buying pressure can’t overcome selling despite positive inflows, it signals supply is overwhelming demand. 

The token has been range-bound between $1.8-2.4 for weeks without breaking out despite occasional inflow spikes.

The Levels That Decide The Next Move

If XRP holds:

• $1.8-1.9: Critical support zone tested multiple times
• Holding here keeps the range intact

If XRP breaks down:

• $1.72: December low and next major support
• $1.6 or lower: Catastrophic breakdown zone

If XRP rallies:

• $2.04: First resistance (20-day average)
• $2.06-2.19: Stronger barriers (50-day and 100-day averages)
• $2.72: Major breakout level that opens path to $3+

The simple math: Hold $1.8 or drop to $1.60. Reclaim $2 to stop the bleeding.

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