XRP Plunges to $1: The Crypto That Slipped on a Banana Peel

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Markets

What to know:

  • XRP has slid to $1.44, its lowest level since November 2024, as Bitcoin’s tumble fans the flames of risk aversion across the crypto bazaar.
  • The token has burst through the stubborn $1.60 line, once a bustling moat for buyers in April’s sell-off, leaving precious little technical ballast until the mythical $1.00 psychological floor.
  • Deribit options markets show people buying crash insurance, as if the wheel of fortune has decided to go on strike.

Payments-focused cryptocurrency XRP is tanking fast as bitcoin’s price slide leads to broad-based risk aversion in the crypto market.

XRP has slipped to $1.44, the lowest since November 2024 – the same month President Donald Trump won the U.S. election. Trump campaigned on pro-crypto policies to foster a favorable regulatory environment for digital assets. XRP is used by fintech firm Ripple to facilitate cross-border transactions.

While the initial reaction to Trump’s election win was bullish, the uptrend quickly slowed above $3.50 and eventually peaked at $3.65 in July last year. Since then, XRP has been in a downtrend that has gathered pace in recent weeks.

Support break

The concerning part for bulls is that it now trades firmly below $1.60, a level where buyers stepped in during the April sell-off, arresting the slide at the time. This so-called support was the prominent demand zone, and the break below the same indicates that sellers are now in control.

Now, a clear air pocket looms right down to $1.00, as charts reveal scant historical support or trading volume between the current price of $1.44 and the psychological floor.

Bearish bets

And traders look to be prepping for a deeper sell-off. Block flows on leading crypto options exchange Deribit featured demand for put spreads, a bearish strategy, and strangles, a bet on volatility boom, in the past 24 hours.

Options are derivative contracts that give the purchaser the right, but not the obligation, to purchase or sell the underlying asset at a predetermined price at a later date. A put option gives the right to sell and represents a bearish bet on the market, while a call option represents a bullish bet.

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2026-02-05 07:23