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XRP got hammered yesterday. The cryptocurrency fell 41% after smashing through the $1.88 support level that traders had been watching for weeks, confirming what analysts called a brutal -88% setup that’s been brewing since January.
The drop caught pretty much everyone off guard, with XRP now trading way below what most considered safe territory. Market watchers are scrambling to figure out where the bleeding stops, with $1 and $0.33 emerging as the next major support zones on monthly charts. The $1.12 level that many thought would hold? It didn’t even slow the selloff down. Traders who bought that dip got crushed as XRP kept falling through what seemed like solid technical levels.
Not looking good right now.
The broader crypto market isn’t helping XRP’s cause either, with wild swings hitting most major tokens over the past week. Bitcoin’s own volatility seems to be dragging everything else down with it, and XRP holders are feeling the pain more than most. Some veteran traders say they’ve seen this movie before, but newer investors are getting their first real taste of how fast things can go south in crypto.
John Bollinger jumped into the conversation on February 5, warning traders about what’s coming next. “The Bollinger Bands are widening significantly around XRP, and that typically means we’re going to see more wild price swings in the coming days,” he said. Bollinger’s technical tool measures volatility, and when those bands spread apart like they have with XRP, it usually signals that the roller coaster isn’t over yet.
But the real action happened on the exchanges.
Binance saw XRP trading volumes explode on February 4, with the surge coming right as the price started its nosedive. Exchange data shows that retail traders were scrambling to either cut losses or double down on what they hoped was a temporary dip. The volume spike tells the story of panic and opportunity colliding in real time.
CryptoQuant dropped some interesting numbers on February 6, showing massive XRP outflows from exchanges over the past 48 hours. When investors pull coins off exchanges, it usually means one of two things: they’re planning to hold through the storm, or they’re moving assets to cold storage to avoid further losses. Either way, it’s a sign that people are taking the situation seriously and don’t expect things to calm down anytime soon.
Ripple Labs stayed quiet when reporters reached out for comment. The company that created XRP didn’t respond to multiple requests about the price crash, leaving investors to guess what might be driving the selloff. That silence isn’t helping confidence, especially when traders are looking for any signal about whether this is just market noise or something more serious.
Social media went crazy according to Santiment’s data. The blockchain analytics firm tracked a huge jump in XRP mentions across Twitter and Reddit over the past week, with most of the chatter focused on whether to buy the dip or run for the exits. When crypto gets this much attention on social platforms, it often means more volatility is coming as FOMO and fear battle it out.
CoinMarketCap’s rankings tell the damage story pretty clearly. XRP dropped several spots in the market cap rankings as of February 5, losing its position among the top-tier cryptocurrencies. The market cap hit reflects not just the price drop but also the psychological impact on investors who thought XRP was more stable than it turned out to be.
Mike McGlone from Bloomberg Intelligence tried to find some silver lining on February 6. “While XRP faces serious challenges right now, the broader crypto market has shown resilience before, and that could eventually create recovery pathways,” he said. McGlone thinks any bounce depends on XRP holding above that $1 support level, but he admits that’s looking pretty shaky right now.
Lark Davis, a well-known crypto analyst, called February 5 a make-or-break moment. “The $1 support is absolutely critical for XRP,” Davis said. “If it loses that level, we’re probably looking at a much deeper correction that could really shake investor confidence.” Davis has been tracking XRP for years, and his concern about the $1 level has other analysts worried too.
Kraken reported something that should worry XRP bulls: short positions jumped on February 6. More traders are betting against XRP now, which creates additional downward pressure on the price. When shorts pile up like this, it often means the bearish sentiment has really taken hold, making any recovery that much harder to achieve.
Glassnode’s data showed one bright spot – active XRP addresses actually increased despite the price crash. The SEC lawsuit against Ripple keeps hanging over everything, adding another layer of uncertainty that traders can’t ignore.
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