 ▲ XRP (XRP) / ChatGPT-generated image |
As investor sentiment deteriorated following Bitcoin’s sharp plunge, the price of XRP has fallen to its lowest level in 15 months, while Ripple has moved a massive amount worth hundreds of billions of won, heightening tension across the market.
According to cryptocurrency-focused outlet The Crypto Basic on February 6 (local time), Ripple distributed a total of 534 million XRP to anonymous wallets and exchanges on the same day. This large-scale transfer was detected by the blockchain tracking service Whale Alert and coincides with a steep downward trajectory in XRP’s price, stoking investor fears of a sell-off. Industry experts believe Ripple may have moved the funds for liquidity provision or institutional transactions, though the specific reason has not been disclosed.
XRP is currently testing its lowest support level in 15 months after plunging more than 10% over the past 24 hours. This represents a drop of over 70% from its peak of $3.30 recorded in January 2025, effectively retreating to levels near the lows formed in late 2024. Market observers warn that even key psychological support levels are at risk, with fearful projections suggesting prices could slide further toward the $0.50 range if declines continue.
XRP’s weakness aligns with broader macro trends in which Bitcoin (BTC) has come under pressure near the $60,000 level, shrinking the total cryptocurrency market capitalization to below $2 trillion. Heightened risk-off sentiment, driven by uncertainty surrounding U.S. President Donald Trump’s foreign policy and escalating military tensions in the Middle East, has pushed investors away from risky assets. The timing of Ripple’s large-scale transfer, coinciding with panic selling, has also raised concerns about potential withdrawals by institutional investors.
Crypto analysts warned that Ripple’s latest fund movement could become a catalyst for even greater market volatility. In the futures market, approximately $150 million worth of long XRP positions have been forcibly liquidated, adding to downward pressure. Combined with concerns over oversupply linked to the release of escrowed XRP holdings, investors are expected to maintain a cautious stance until a clear market bottom is confirmed.
Ripple has yet to issue an official statement, but the market is closely watching whether this large-scale transfer will lead to actual selling. Transaction counts on the XRP Ledger have surged, a trend largely attributed to panic-driven sell-offs by retail investors. Whether Bitcoin can defend the $60,000 level and Ripple’s asset allocation strategy are expected to be the key variables shaping XRP’s future price direction.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on its content. The information should be interpreted solely for informational purposes.*