XRP price fell over 20% this week, dropping to $1.53, its lowest level recorded since November 2024. According to data from crypto.news, XRP (XRP) price fell 20XRP price fell over 20% this week, dropping to $1.53, its lowest level recorded since November 2024. According to data from crypto.news, XRP (XRP) price fell 20

Three reasons why XRP price risks crash below $1

3 min read

XRP price fell over 20% this week, dropping to $1.53, its lowest level recorded since November 2024.

Summary
  • XRP price is down 20% over the past week.
  • Declining network activity and burn rate have kept price action capped.
  • Multiple bearish patterns have formed on the weekly chart.

According to data from crypto.news, XRP (XRP) price fell 20.7% over the past seven days to a weekly low of $1.53 on Feb. 4 before stabilizing a little higher at $1.60 at the time of writing. The losses position it roughly 56% below its all-time high of $3.65, reached in July last year.

XRP price fell in tandem with the broader crypto market, which has fallen around 15% over the past week, triggered by a confluence of macroeconomic and geopolitical headwinds that have eroded risk appetite among investors.

Notably, the sharp price corrections have triggered liquidation cascades, with billions of dollars of highly leveraged bullish bets being wiped out from the market. In the past 24 hours alone, over $528 million in long positions were liquidated from the market, which comprised roughly $6.65 million worth of XRP longs.

Looking ahead, XRP price remains at risk of further losses in the coming weeks as three bearish catalysts have gained footing.

First, data compiled by DeFiLlama shows that XRP Ledger is struggling in the decentralized finance industry. The network has just 19 protocols and a total value locked of $54.6 million, down over 32% from levels seen in early January.

Declining TVL is a sign that user engagement and capital commitment are drying up, and as such, could likely lower investor demand and suppress prices at least in the short term.

Second, the XRP burn rate has dropped significantly over the past few months. Data from CryptoQuant show that only 523 XRP tokens were burned on Feb. 3, a sizeable drop from over 4,500 recorded in August 2025.

Third, spot inflows into spot XRP ETFs launched in November last year have so far dwindled as institutional demand for crypto-backed products has waned. These investment products drew in just $15.59 million in net inflows in January, marking a U-turn from $666 million and $500 million recorded in November and December last year.

These ETFs typically serve as crucial liquidity buffers that absorb excess supply from the open market. However, with the initial hype now gone, XRP’s price has lost another safety belt that previously helped support its valuation.

XRP price analysis

Technical indicators on the weekly chart also confirm a gloomy outlook for XRP price in the weeks ahead. 

XRP price is currently trapped within a descending parallel channel, which confirms that the overall trend remains bearish. Subsequently, if XRP breaches the lower support line of the pattern, the downtrend could intensify.

XRP price has been trading within a descending parallel channel pattern on the weekly chart.

Having fallen for five weeks straight, XRP is also at the brink of breaking below the $1.56 Murrey Math pivot level. It has already slipped under its 20, 50, and 100-day moving averages and is on the verge of turning a previous double top neckline at $1.60 into a new level of resistance.

Consequently, the forecast remains heavily bearish. If XRP cannot hold its current ground, the next stop is the psychological floor at $1. A breach of that level would likely open the door for a further slide toward $0.78, which marks a major reversal zone on the Murrey Math scale.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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