XRP fell to $1.50 Feb. 2, marking its lowest level since November 2024 after weekend liquidations wiped $2.2 billion across cryptocurrency markets.
The token dropped 10% to during weekend's selloff, extending four consecutive bearish weekly candles that pushed prices 29% below yearly peaks.
XRP's futures funding rate turned negative for the first time in weeks as short positions dominated derivatives positioning ahead of further downside.
What Happened
XRP closed below its 100-week exponential moving average, a technical breakdown last seen in 2022 when prices crashed 60% following similar violations.
Weekend futures liquidations totaled $40 million for XRP positions, with 99% of forced closures hitting long traders betting on price increases.
The token broke through $1.71 support cluster and approached its realized price of $1.48, where on-chain cost basis analysis typically identifies accumulation zones.
Negative funding rates indicate short traders now pay longs to maintain positions, reversing January's bullish derivatives sentiment when rates stayed consistently positive.
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Why It Matters
XRP recorded its fourth consecutive monthly loss in January, a streak unseen since 2017 when five consecutive red months preceded 73% September gains.
ETF flows turned mixed in late January after 35 days of uninterrupted inflows, with $40.8 million exiting funds Jan. 7 before recovering toward month-end.
Exchange-held XRP balances fell 57% since early 2025 to 1.7 billion tokens, creating tighter liquidity conditions that amplify price movements in both directions.
Technical analysis suggests potential further decline to $1.25-$1.26 levels representing October flash crash lows, though historical patterns show 70% probability of February recovery.
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