Entering late January, the volatility in the crypto market continues to ferment. From a technical perspective, 2026 has started off well, but the largest assets by market cap are all experiencing losses—prompting speculation about whether this is a normal post-consolidation correction or if deeper changes are brewing.

Ripple(XRP)'s experience is particularly noteworthy. From late December last year to early January this year, it increased by over 12%, nearly double the same period's Ethereum(ETH) gains. Such a strong rally is often followed by a swift decline. According to CoinMarketCap data, XRP has fallen about 11% this week, making it the worst performer among the largest cryptocurrencies by market cap. Near $2.50, clear selling pressure has accumulated, with continuous sell-offs, and profit-taking has already begun.

Interestingly, speculative funds are actively entering the market. Recently, a long position worth $3.58 million was discovered. This raises an intriguing question—is this a high-risk gamble, or are traders holding information that the market has yet to react to?

Meanwhile, as large investors combat volatility, liquidity barriers for XRP are gradually emerging. From a technical standpoint, this 11% correction this week looks like a textbook shakeout after an upward rally—retail traders locked in profits before the hype faded, and whales have become the focus of market attention. XRP is currently exhibiting what traders often call a "big divergence," which typically signals an imminent breakout in direction.