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    Home»Market»Top Reasons Why XRP Price Is Dropping Today
    An image of the Altcoin XRP Drop
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    Top Reasons Why XRP Price Is Dropping Today

    Oguz OzdemirBy Oguz OzdemirFebruary 1, 2026No Comments3 Mins Read
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    XRP price fell sharply today. At press time, the token was trading at $1.68, down by 4% in the past 24 hours. The token has declined by more than 12% over the past week and by more than 9% over the past month. The decline outpaced the broader crypto market’s 0.8% dip, driven by macro pressure, capital rotation, liquidations, and technical weakness.

    XRP Price Slides as U.S. Partial Government Shutdown Hits Markets

    XRP price weakened as the United States entered a partial government shutdown after Congress missed a Friday midnight funding deadline. Several federal agencies lost funding, increasing uncertainty across financial markets. Notably, the shutdown affected crypto sentiment alongside traditional risk assets.

    However, XRP did not move in isolation during the session. Broader digital asset markets also declined in response to political disruption. As a result, risk appetite fell across altcoins during U.S. market hours. This risk-off change redirected capital flows. That transition became visible in Bitcoin’s rising dominance and derivatives data.

    Bitcoin Dominance, Liquidations, and ETF Outflows

    XRP Price faced selling pressure as Bitcoin dominance climbed to 59.24%, drawing liquidity away from altcoins. Meanwhile, the Crypto Fear and Greed Index held at 26, its lowest level since November 2025. As a result, traders reduced exposure to higher-risk assets like XRP. CoinGape reported that the crypto market crash triggered $2 billion in liquidations across top crypto assets.

    Derivatives data confirmed forced selling. XRP’s 24-hour trading volume surged 20.67% to $4.06 billion during the decline. This increase coincided with more than $70 million in XRP futures liquidations, primarily from long positions.

    Meanwhile, institutional flows added further downside pressure. According to SosoValue data, XRP spot ETFs posted weekly net outflows of $52.26 million. This came as XRP funds recorded a nearly $93 million single-day outflow on Thursday, the largest daily exit this week.

    Whale Transfers and Technical Breakdown

    Whale Alert reported multiple large transfers between unknown wallets. The movements included four separate transactions of 60,000,000 XRP each. At prevailing prices, the transfers were valued at approximately $103.6 million, $103.8 million, $103.5 million, and $103.7 million.

    In total, over 239 million XRP moved on-chain within a short timeframe. Although the wallets remained unidentified, the timing aligned with increased selling pressure. Meanwhile, XRP’s technical structure weakened further. 

    The price broke multiple minor support levels. XRP now trades just above the $1.65–$1.60 zone, a key short-term support range. Failure to hold this area could expose lower levels of $1.40 if selling persists.

    Momentum indicators confirm sustained weakness. The RSI dropped to 29.59, placing XRP firmly in oversold levels. Meanwhile, the RSI moving average is near 40.14, indicating the strength of recent downside momentum.

    Source: TradingView

    MACD readings reinforce the bearish trend. The MACD line is at −0.0701, while the signal line is at −0.0415. Price action is below key short-term moving averages, limiting rebound attempts. As a result, XRP continues to consolidate near support while downside pressure dominates intraday trading.

    Dropping Price reasons Today Top XRP
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    Oguz Ozdemir
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