XRP’s Plucky Plunge: Will $1.45 Be Its Saving Grace?

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Darling, gather ’round, for the saga of XRP continues! Our plucky little token is teetering on the precipice of a critical demand zone near $1.45, as on-chain velocity soars and open interest takes a dramatic bow. What’s next? A triumphant bounce or a tragic tumble? Only the market’s whimsy knows.

  • XRP, poor dear, hovers near $1.44 after a week of rather unflattering losses, with sellers still dictating the short-term drama.
  • On-chain velocity has surged to heights not seen since last year’s soirees, suggesting a frantic re-positioning as the price weakens. How très chic.
  • A firm hold above $1.45 might spark a short-lived bounce, while a breakdown could lead to deeper losses. Oh, the suspense!

At press time, XRP was lingering near $1.44, down a rather embarrassing 10% in the past 24 hours, sliding to its lowest level since November 2024. The token has been having a bit of a rough patch, darling, weakening across all major timeframes-23% over the past week and nearly 40% over the past month. Quite the fashion faux pas.

Price action over the last seven days has been confined between $1.44 and $1.88, with sellers maintaining their grip. Yet, market activity has picked up, with XRP recording $5.07 billion in trading volume in the past 24 hours, up 25%. How positively bustling!

Derivatives data, however, strikes a more cautious note. CoinGlass figures reveal futures volume rose 17% to $7.94 billion, while open interest slipped 1.8% to $2.61 billion. This mix suggests traders are reducing leverage while spot activity rises-a setup that often appears near short-term turning points. How delightfully dramatic!

XRP Velocity Spikes: A Frenzy of Activity

A Feb. 4 analysis by the ever-observant CryptoQuant contributor CryptoOnchain highlighted a sharp move in XRP Ledger activity. The seven-day SMA of XRP velocity climbed to 0.013 on Feb. 3, matching the highest levels seen since January 2025. Quite the social event, wouldn’t you say?

In previous cycles, this level has appeared at key moments. During this instance, the velocity increase coincided with a price decline, suggesting rapid coin movement rather than steady accumulation. Such conditions are often linked to older holdings changing hands or aggressive short-term trading during periods of stress. How utterly exhausting!

According to the analyst, when velocity reaches its upper range while price struggles, it can mark a high-friction phase in the market. Whether this activity marks late-stage selling or the early stages of stabilization depends on how the price reacts around key support. Oh, the intrigue!

In a separate note, CryptoOnchain pointed to a sharp drop in XRP open interest on Binance, which has fallen to $405.9 million, the lowest level since November 2024. A market reset of this size suggests leverage has been significantly reduced. The probability of more forced sales drops as positions are unwound. This eases the influence of derivatives on short-term price moves. How terribly civilized!

Under these conditions, if spot demand holds up, any rebound is more likely to develop in a gradual and orderly way. How utterly unexciting, but perhaps necessary.

XRP Price Technical Analysis: The Drama Unfolds

XRP is testing a clearly defined demand zone at $1.45, which has held during prior drops. The token is trading well below its 20-day moving average, placing the price in a rather stretched position. How très awkward!

XRP has also slipped below the lower Bollinger Band, which points to shrinking volatility. Instead of sellers running out of steam, the price action suggests heavy selling pressure pushing straight into support. How utterly relentless!

The relative strength index is in the low-30s, indicating that momentum is weak but getting closer to levels where selling pressure often slows. How positively tiresome!

Smaller bodies and longer wicks on recent candles suggest that sellers are meeting more resistance close to the current price. So far, the $1.45 level has not given way on a daily close. How tenacious!

If buyers continue to defend this zone, a short-term bounce toward $1.60-$1.70 becomes possible, driven by oversold conditions and reduced leverage. For the price to stabilize further, XRP would need to reclaim $1.80 and hold it. How ambitious!

Failure to hold $1.45 would change the picture quickly. A clean break below that level could open the door to deeper losses, as visible support becomes thinner beneath current prices. How dreadfully dramatic!

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2026-02-05 10:38