Why Is Ripple’s (XRP) Price Down by Double Digits Today, and Is $1 Next?

Ripple’s cross-border token has not been spared in the past 24 hours (or the last week or so), and has actually become the poorest performer from the larger-cap alts.

The asset has slumped by over 10% daily as it dumped to $1.42 minutes ago, which became the lowest price tag since late November 2024.

XRPUSD Feb 5. Source: TradingView

The chart above demonstrates that XRP has dropped significantly on smaller and larger timeframes. Recall that it had surged to $2.40 just a month ago, when it was violently rejected, and has plummeted by 40% since then.

While last Thursday’s crash could be attributed, at least to some extent, to investors employing the ETFs to gain XRP exposure, as they withdrew $92.92 million in just a day, making it the worst since their inception, the price moves now contrast with the most recent ETF behavior.

Data from SoSoValue shows that investors have actually invested $19.46 million on Tuesday and $4.83 million on Wednesday into the financial vehicles.

Additionally, Ripple made a big announcement yesterday by outlining institutional support for Hyperliquid through its prime brokerage platform.

Consequently, the most probable reasons behind today’s crash don’t seem to be related to ecosystem weakness or fundamental problems. Instead, the growing FUD within the broader crypto market continues to take its toll, with (retail) investors disposing of their positions.

Moreover, the liquidation cascades have often been blamed by analysts for the market behavior in crypto, where volatility is often in the double digits.

CryptoWZRD weighed in on XRP’s daily performance, indicating that the asset closed bearish. At the time of their post, the token tested the $1.51 support, which cracked in the following hours and opened the door for another decline.

Previously, analysts identified $1.42 and $1.27 as the only two support levels remaining before XRP heads toward the psychological $1.00 level.

The post Why Is Ripple’s (XRP) Price Down by Double Digits Today, and Is $1 Next? appeared first on CryptoPotato.