NEW YORK, Feb 5, 2026, 06:06 EST
- XRP dropped roughly 12%, falling to about $1.40 amid a wider selloff in risk assets across the crypto market.
- A chart analyst flagged XRP entering a “washout” phase, suggesting it might pave the way for a bigger rally toward $20–$30 if the trend persists.
- Traders are weighing XRP’s legal standing after the SEC case, alongside Ripple’s moves into payments and market infrastructure.
XRP dropped roughly 12% on Thursday, sliding to about $1.40. The steep retreat has traders wary of forced selling and potential false breakouts, though a few analysts still hold onto longer-term bullish forecasts.
The decline is significant since XRP has evolved beyond a simple retail token narrative. It now serves as a benchmark for whether emerging regulated channels into crypto—like spot exchange-traded funds—can sustain demand when investors pull back.
Timing also plays a role: XRP’s drop comes after a surge earlier this year, just as Ripple, the firm behind the token, pushes beyond payments into trading and treasury infrastructure — sectors that usually draw larger, more conservative investors.
Technical analyst XForceGlobal, identified as a Korean Certified Elliott Wave expert, noted that XRP entered a “washout” phase inside a larger Elliott Wave corrective pattern—a method that breaks down price movements into recurring “waves.” TradingView
He highlighted a volatile range between about $1.50 and $1.08–$1.09, then outlined a scenario where a fresh multi-wave rally might send prices much higher. “It… could bring us up into that $20 to $25, $30 region,” he said. TradingView
Ripple insists that broader market involvement depends on clearer regulations and institutional-level infrastructure. Back in April 2025, when it unveiled a $1.25 billion acquisition of prime broker Hidden Road, CEO Brad Garlinghouse declared, “The U.S. market is effectively open for the first time.” Prime brokers offer key services such as clearing and financing to major trading clients. Reuters
In August 2025, Ripple announced plans to acquire stablecoin payments platform Rail for $200 million. President Monica Long described the stablecoin space as “really ripe.” Stablecoins are tokens meant to maintain a stable value, typically pegged to the U.S. dollar. Reuters
Ripple announced it will acquire treasury management software company GTreasury for $1 billion, aiming to expand into corporate cash management and payments in addition to its current crypto offerings.
Regulation still plays a pivotal role. In August 2025, the U.S. Securities and Exchange Commission closed its case against Ripple, imposing a $125 million fine along with an injunction related to institutional sales. Ripple’s chief legal officer, Stuart Alderoty, described this as “the end” of the dispute. Reuters
This week on Binance Square, a BitcoinWorld post outlined long-term scenarios, projecting Bitcoin could hit $5 by decade’s end in an “optimistic” outlook. It also highlighted challenges from established payment networks and emerging central bank digital currencies, or CBDCs — government-backed digital money. Binance
A Motley Fool piece released Thursday noted that XRP remains far below its early January peak around $2.40, describing its next shift as a battle between waning speculative interest and institutional buying.
But the downside is clear: technical setups fail, and crypto liquidations can quickly turn a “zone” into a trapdoor. XRP’s ongoing legal limits on institutional sales still hang over the market, while a broader selloff in bitcoin and ether could easily drown out token-specific stories.
