New York: XRP price has dropped by 7.80% in the last 24 hours to reach around $2.30 on Feb. 7, mirroring declines in the broader crypto market.
According to Azeri-Press News Agency, this decline is part of a consolidation move following the global market rout on Feb. 3. Nearly $152.35 million worth of XRP futures positions have been liquidated since then, with long liquidations totaling $106.70 million. Technical indicators suggest further declines in the coming weeks.
The sell-off in XRP is occurring alongside a stronger-than-expected forecast for US job growth in January, which has reinforced expectations that the Federal Reserve may delay interest rate cuts. Prediction markets estimate that 238,000 jobs were added in January, significantly above Wall Street’s median forecast of 169,000. There is a 28% chance that over 300,000 jobs were added, according to trading resource The Kobeissi Letter. A resilient labor market reduces the urgency for the Federal Reserve to cut interest rates, which keeps borrowin
g costs elevated. A stronger US economy typically supports the dollar, making risk assets like XRP less attractive to investors. The chances of a modest 0.25% rate cut at the Fed’s March meeting stand at just 14.5%, compared to 36.1% a month ago.
The sentiment in the crypto market has shifted from ‘greed’ to ‘fear’ following the Feb. 3 crash, triggered by President Trump’s trade war escalation. XRP traders are feeling the pressure, despite a series of optimistic updates, including the latest ETF filings in the US. Cboe, a Chicago-based exchange, has filed applications with the SEC to list spot XRP ETFs from WisdomTree, Bitwise, 21Shares, and Canary. Additionally, the trial lawyer who signed the SEC’s lawsuit against Ripple has resigned, leading analysts to suggest that the SEC vs. Ripple case may be nearing its end. Despite these developments, XRP has slid over 18% in the past week, with market analyst Johnny Woo noting that altcoins like XRP are in a correction phase.
XRP is struggling as derivatives trade
rs unwind their positions, with open interest dropping over 50%. The plummet in open interest signals a decline in trader participation. XRP futures liquidations have amounted to $152.35 million since Feb. 3, with long traders accounting for $106.70 million. The funding rate remains positive at 0.0024% but is much lower than its December peak of 0.0966%, suggesting weaker bullish conviction. The sharp drop in open interest and high long liquidations indicate that leveraged traders are exiting their positions, triggering forced selling.
XRP is currently testing a critical bullish continuation pattern as traders reassess its breakout strength. The token is retesting a critical support level after failing to sustain momentum, which appears to be a technical retest of the upper boundary of its previous symmetrical triangle. If XRP holds above this key support, it could validate the breakout, setting the stage for a move toward the $4 price target based on the triangle’s measured move. However, if XRP fails to ho
ld above the upper trendline, it could slide further toward the 50-day EMA ($2.59) and the 200-day EMA ($1.63), both of which serve as critical dynamic support levels.