XRP price fell more than 20% over the past week, hitting a low of $1.53 on Feb. 4 — the cheapest since November 2024. It has since edged back to around $1.60, still roughly 56% below its all-time high of $3.65 from July 2025. The move mirrors a broader crypto market downturn of about 15%, triggered by a mix of macroeconomic and geopolitical headwinds that have eroded risk appetite.
DeFi Struggles: TVL Down 32%
Data from DeFiLlama shows the XRP Ledger now hosts only 19 protocols, with total value locked (TVL) falling to $54.6 million – a decline of over 32% from early January. A shrinking TVL often signals waning user engagement and capital commitment, which could weigh on investor demand and cap prices in the near term.
Burn Rate Collapses from 4,500 to 523
XRP's deflationary mechanism relies on transaction burns, but the burn rate has dropped sharply. According to CryptoQuant, only 523 XRP were burned on Feb. 3, compared with over 4,500 in August 2025. The slowdown reduces supply-side pressure and removes a price support factor.
Spot ETF Inflows Fizzle: January Net Inflow Only $15.6M
Spot XRP ETFs, launched in November 2025, initially acted as a liquidity buffer. However, monthly net inflows collapsed from $666 million in November and $500 million in December to just $15.59 million in January 2026. With institutional appetite fading, ETFs no longer absorb excess supply as effectively, removing another safety net.
Technical Picture: $1 Psychological Level Under Threat
On the weekly chart, XRP is trapped inside a descending parallel channel, confirming a bearish trend. It has fallen for five consecutive weeks and slipped below its 20-, 50-, and 100-day moving averages. The $1.56 Murrey Math pivot level has been breached, and the previous double-top neckline at $1.60 is turning into resistance. If XRP fails to hold current support, the next stop is the psychological $1 mark. A break below that could open the door to $0.78, a major reversal zone on the Murrey Math scale.