XRP hit $1.53 on February 4 and traded near $1.60, keeping the $1 level in focus as price stays far below the $3.65 high from July 2025. However, XRPL TVL is $54XRP hit $1.53 on February 4 and traded near $1.60, keeping the $1 level in focus as price stays far below the $3.65 high from July 2025. However, XRPL TVL is $54

XRP Price Analysis: How Current Trends Point to a Possible $1 Floor Breach

3 min read
  • XRP hit $1.53 on February 4 and traded near $1.60, keeping the $1 level in focus as price stays far below the $3.65 high from July 2025.
  • However, XRPL TVL is $54.6 million and down 32% since early Jan, while last month’s spot XRP ETF inflows slowed to $15.59 million.

XRP extended its weekly decline on February 4, falling to $1.53 before rebounding to about $1.60. The price action marked a decline of over 15% in seven days and had the altcoin trading well lower than its July 2025 peak of $3.65.

Derivatives positioning also played a role in the fall. Leveraged long positions were pushed out as the prices dropped, accelerating the downswing. Over the last 24 hours, over $528 million in long liquidations occurred in crypto markets, and nearly $6.65 million in long liquidations were XRP.

Other than price action, other indicators of activity on the XRP Ledger have indicated a cooling. The network’s decentralized finance segment remains relatively small and has contracted since early January. Total value locked sits near $54.9 million, down by 30% from levels seen at the start of the year. 

XRP ChartSource: DeFiLlama

A lower locked value is generally an indicator of decreased capital commitment to lending, liquidity, and associated on-chain strategies that can be translated into weak near-term demand.

Meanwhile, early on today, we reported that the XRP Ledger went live with Permissioned Domains under the XLS-80 amendment after gaining more than 91% validator support. The upgrade introduces credential-based access controls built on the XLS-70 framework.

Network Operation and ETF Flows Indicate Decline in XRP Support

The rate of XRP burns has also slowed down, which indicates that there is less fee-burning than last year. Approximately 523 tokens were burned on February 3, which is much lower than the over 4,500 that were burned on average in August 2025.

Institutional allocation through spot XRP exchange-traded funds has slowed as well. After stronger early inflows when the products launched in November 2025, January recorded net inflows of about $15.59 million, compared with the higher figures seen in November and December. 

The slowdown in ETF purchases can affect a continuous stream of demand that can absorb open-market supply.

On the weekly chart, the XRP price action is on a downward parallel channel, a trend that relates to low highs and continuous selling efforts. In case of the failure of current support, the level of $1.00 is the reference point.

A decline below $1 would focus attention upon lower downside levels, including the $0.78 zone, which is an important reversal zone. At the time of press, the crypto was trading at $1.58. The altcoin’s 24-hour trading volume stood at $4.04 billion, while its market cap was $96.4 billion.

]]>
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Trading time: Tonight, the US GDP and the upcoming non-farm data will become the market focus. Institutions are bullish on BTC to $120,000 in the second quarter.

Trading time: Tonight, the US GDP and the upcoming non-farm data will become the market focus. Institutions are bullish on BTC to $120,000 in the second quarter.

Daily market key data review and trend analysis, produced by PANews.
Share
PANews2025/04/30 13:50
Ethereum Fusaka Upgrade Set for December 3 Mainnet Launch, Blob Capacity to Double

Ethereum Fusaka Upgrade Set for December 3 Mainnet Launch, Blob Capacity to Double

Ethereum developers confirmed the Fusaka upgrade will activate on mainnet on December 3, 2025, following a systematic testnet rollout beginning on October 1 on Holesky. The major hard fork will implement around 11-12 Ethereum Improvement Proposals targeting scalability, node efficiency, and data availability improvements without adding new user-facing features. According to Christine Kim, the upgrade introduces a phased blob capacity expansion through Blob Parameter Only forks occurring two weeks after Fusaka activation. Initially maintaining current blob limits of 6/9 target/max, the first BPO fork will increase capacity to 10/15 blobs one week later. A second BPO fork will further expand limits to 14/21 blobs, more than doubling total capacity within two weeks. Strategic Infrastructure Overhaul Fusaka prioritizes backend protocol improvements over user-facing features, focusing on making Ethereum faster and less resource-intensive. The upgrade includes PeerDAS implementation through EIP-7594, allowing validator nodes to verify data by sampling small pieces rather than downloading entire blobs. This reduces bandwidth and storage requirements while enhancing Layer 2 rollup scalability. The upgrade builds on recent gas limit increases from 30 million to 45 million gas, with ongoing discussions for further expansion. EIP-7935 proposes increasing limits to 150 million gas, potentially enabling significantly higher transaction throughput. These improvements complement broader scalability efforts, including EIP-9698, which suggests a 100x gas limit increase over two years to reach 2,000 transactions per second. Fusaka removes the previously planned EVM Object Format redesign to reduce complexity while maintaining focus on essential infrastructure improvements. The upgrade introduces bounded base fees for blob transactions via EIP-7918, creating more predictable transaction costs for data-heavy applications. Enhanced spam resistance and security improvements strengthen network resilience against scalability bottlenecks and attacks. Technical Implementation and Testing Timeline The Fusaka rollout follows a conservative four-phase approach across Ethereum testnets before mainnet deployment. Holesky upgrade occurs October 1, followed by Sepolia on October 14 and Hoodi on October 28. Each testnet will undergo the complete BPO fork sequence to validate the blob capacity expansion mechanism. BPO forks activate automatically based on predetermined epochs rather than requiring separate hard fork processes. On mainnet, the first BPO fork launches December 17, increasing blob capacity to 10/15 target/max. The second BPO fork activates January 7, 2026, reaching the final capacity of 14/21 blobs. This automated approach enables flexible blob scaling without requiring full network upgrades. Notably, node operators face release deadlines ranging from September 25 for Holesky to November 3 for mainnet preparation. The staggered timeline, according to the developers, allows comprehensive testing while giving infrastructure providers sufficient preparation time. Speculatively, the developers use this backward-compatible approach to ensure smooth transitions with minimal disruption to existing applications. PeerDAS implementation reduces node resource demands, potentially increasing network decentralization by lowering barriers for smaller operators. The technology enables more efficient data availability sampling, crucial for supporting growing Layer 2 rollup adoption. Overall, these improvements, combined with increased gas limits, will enable Ethereum to handle higher transaction volumes while maintaining security guarantees. Addressing Network Scalability Pressures The Fusaka upgrade addresses mounting pressure for Ethereum base layer improvements amid criticism of Layer 2 fragmentation strategies. Critics argue that reliance on rollups has created isolated chains with limited interoperability, complicating user experiences. The upgrade’s focus on infrastructure improvements aims to enhance base layer capacity while supporting continued Layer 2 growth. The recent validator queue controversy particularly highlights ongoing network scalability challenges. According to a Cryptonews report covered yesterday, currently, over 2M ETH sits in exit queues facing 43-day delays, while entry queues process in just 7 days.Ethereum Validator Queue (Source: ValidatorQueue) However, Vitalik Buterin defended these delays as essential for network security, comparing validator commitments to military service requiring “friction in quitting.” The upgrade coincides with growing institutional interest in Ethereum infrastructure, with VanEck predicting that Layer 2 networks could reach $1 trillion market capitalization within six years. Fusaka’s emphasis on data availability and node efficiency supports Ethereum’s evolution toward seamless cross-chain interoperability. The upgrade complements initiatives like the Open Intents Framework, where Coinbase Payments recently joined as a core contributor. The initiative, if successful, will address the $21B surge in cross-chain crime. These coordinated efforts aim to unify the fragmented multichain experience while maintaining Ethereum’s security and decentralization principles
Share
CryptoNews2025/09/19 16:37
VectorUSA Achieves Fortinet’s Engage Preferred Services Partner Designation

VectorUSA Achieves Fortinet’s Engage Preferred Services Partner Designation

TORRANCE, Calif., Feb. 3, 2026 /PRNewswire/ — VectorUSA, a trusted technology solutions provider, specializes in delivering integrated IT, security, and infrastructure
Share
AI Journal2026/02/05 00:02