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- Debashree Patra
Debashree Patra
- Reviewed by:
Nidhi KolhapurNidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Feb 06, 2026 12:52 UTC
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Will XRP Price Crash Below $1 Amid the Crypto Market Sell-Off
XRP dropped 17% due to a wider crypto market crash, heavy liquidations, and panic selling—despite positive Ripple news and ongoing ETF inflows.
The XRP sell-off was driven by Bitcoin and Ethereum weakness, $46M in liquidations, and leverage unwinds, not negative developments from Ripple.
XRP’s sharp fall reflects market-wide fear and forced liquidations, but strong institutional interest and regulation gains keep recovery hopes alive.
XRP’s sharp 17% fall did not happen because of bad news from Ripple. The real reason was a broader crypto market crash. Bitcoin price fell quickly, and Ethereum dropped below the important $2,000 level. Investors across the market rushed to sell and cut their risk.
XRP usually moves faster than most large cryptocurrencies. So when the market turned negative, XRP fell harder and faster than others.
Once prices started dropping, panic selling kicked in. More sellers entered the market, pushing the price down even further in a short time.
Heavy Liquidations Triggered the XRP Sell-Off
The biggest reason behind the XRP price drop was forced liquidations. In the last 24 hours alone, nearly $46 million worth of XRP positions were closed automatically. Most of these were traders who had bet on XRP prices going higher.
When XRP fell below the key level near $1.44, many of these trades were shut down by exchanges. This added more selling pressure and caused prices to fall even faster.
In markets with high borrowing and leverage, once selling starts, prices often keep falling until the most risky positions are cleared.
Ripple’s Positive News Couldn’t Save XRP Price
This drop confused many investors because Ripple recently secured important regulatory approvals in Europe, including licenses in the UK and Luxembourg. Normally, such news would help XRP prices.
However, during a market-wide selloff, investors focus more on fear and safety than long-term progress. Right now, XRP is moving based on short-term market emotions rather than Ripple’s business growth.
Key XRP Support Levels to Watch Next
The $1.00 price level is now the most important support for XRP. If the crypto market stays weak, a move toward this level would not be surprising.
XRP could briefly dip below $1.00 if panic selling returns, but a long-term fall below this level would likely need another major wave of selling across the market.
Meanwhile, analyst Bill Morgan’s comment about XRP possibly dropping below USDC in market value highlights how fragile investor confidence remains.
Why XRP Recovery Is Still Possible
Despite the sharp fall, large investors are not panicking. XRP ETFs are still seeing money flow in, even during the price drop. This is very different from Bitcoin ETFs, which have faced strong outflows.
XRP’s recovery will largely depend on whether Bitcoin and Ethereum stabilize. If the overall market calms down and price swings slow, XRP could bounce back faster than many expect.
With better regulation, steady interest from institutions, and lower risky trading activity, this drop may turn out to be a short-term reset rather than a long-term downtrend.
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FAQs
Short-term traders and leveraged participants are most exposed, as rapid price swings can trigger margin calls or forced exits. Long-term holders are less directly impacted unless volatility persists.
Sharp declines often reduce speculative leverage in the short term, leading to lower volatility. This can create a more stable trading environment once weaker positions are flushed out.
Institutions may reassess short-term risk models but typically focus on liquidity and regulatory clarity. Sudden drops rarely change long-term exposure strategies unless market stress deepens.
Market participants will monitor derivatives activity, volume trends, and broader crypto sentiment. A shift in Bitcoin or Ethereum momentum often sets the direction before XRP reacts.
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