XRP tumbled to a fresh multi-month low of $1.52 on Feb. 2 as the cryptocurrency market grappled with a sell-off initially triggered by geopolitical tensions in the Middle East. The asset has since recovered a portion of those losses, trading near $1.60 as of 5 a.m. EST.
Erosion of the New Year Bullish Narrative
XRP's 24-hour decline sits at approximately 3%, but recent volatility has pushed its weekly losses to 14.5%, dragging its market capitalization below $97 billion. This double-digit weekly slide aligns with the performance of other high-cap altcoins, many of which saw corrections between 10% and 20%. According to Coingecko data, the broader market rout briefly pushed the total altcoin market capitalization below the $1 trillion threshold.
Although XRP's price action mirrored the systemic weakness, its persistent downtrend throughout January has significantly soured the technical outlook. The year opened with a rapid ascent from $2 to $2.40 within 96 hours, initially convincing market participants that the asset was primed to retest its all-time high of $3.65 set in July 2025. However, that bullish narrative was abruptly dismantled. Since the local peak on Jan. 6, XRP has shed more than 30% of its market value, neutralizing previous support levels and stifling immediate expectations of a return to record valuations.
Technical Outlook and Indicators
As of Feb. 2, XRP's technical indicators are flashing a “strong sell” on daily timeframes, reflecting a market searching for a bottom. The asset is currently trading in a “death stack” configuration, sitting below all major exponential moving averages (EMAs). The 50-day EMA (approximately $2.01) and 200-day EMA (approximately $2.28) are both trending downward. Analysts are watching the 33-month EMA at $1.60; a monthly close below this level would confirm a macro bearish trend, potentially ending the bullish cycle that began in early 2025.
The Relative Strength Index (RSI) is hovering near 40, indicating building bearish momentum while suggesting the asset is not yet oversold. This implies there may be room for further downside. Despite the price drop, some analysts point to a hidden bullish divergence on the two-day chart: while the price has made a lower low ($1.52), the RSI is attempting to form a higher low—a pattern that often signals seller exhaustion and can be a precursor to a trend reversal, provided the $1.50 support holds.
FAQ
- Why did XRP fall to $1.52? Geopolitical tensions in the Middle East triggered a broad crypto sell-off.
- How much has XRP lost recently? It is down 14.5% weekly and over 30% since Jan. 6.
- What is XRP's current technical outlook? Indicators show a “strong sell” with price below key EMAs.
- Could XRP rebound soon? Analysts see a possible trend reversal if $1.50 support holds.