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XRP plunged 4% to $1.61 on January 31 amid crypto's $2B wipeout, with $7M in XRP-specific liquidations — 99% longs, hammering derivatives per @XrpUdate. Price hitXRP plunged 4% to $1.61 on January 31 amid crypto's $2B wipeout, with $7M in XRP-specific liquidations — 99% longs, hammering derivatives per @XrpUdate. Price hit

XRP Price Prediction: $7M Liquidations Spike Eyes $1.85 Bounce

Author: Coinstats

Source: Coinstats

2026/02/01 05:42

2 min read

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News Brief

XRP tumbled 4% to $1.61 on January 31 as crypto markets hemorrhaged $2 billion, with long positions absorbing a brutal 99% of the $7 million in XRP liquidations per @XrpUdate data. After breaching $1.79 support, the price hit an intraday low of $1.70 while volume surged to 3.94 billion tokens amid intensifying altcoin selloffs that deepened Bitcoin and Ethereum's decline. The long-short ratio skewed to an extreme 99:1, obliterating $6.93 million in longs against merely $70,000 in shorts—heatmaps showed the $1.82 breakdown triggered a 72% leverage correction. Furthermore, open interest dropped 15%, funding rates turned negative at -0.01%, and XRP's thin order books amplified swings relative to Bitcoin. Analyst @XrpArab's chart indicates XRP is holding the 61.8% Fibonacci retracement, with momentum suggesting wave three upside continuation toward $1.95 if it maintains $1.80, though slipping below $1.74 risks retesting the $1.60 demand zone. This shakeout follows XRP's January surge from $1.84 to $2.41, now stalling on risk-off sentiment. Meanwhile, Ripple's Treasury platform launched post-GTreasury acquisition, enabling 24/7 liquidity management for fiat, RLUSD, and XRP. XRP spot ETFs attracted $16.79 million on January 30, pushing total assets to $1.19 billion. CEO Garlinghouse expects crypto all-time highs by 2026 driven by US regulations and institutional giants, with bulls eyeing $8 to $12.50 by 2028. Ripple locked 500 million XRP—worth roughly $870 million—in escrow until 2028, tightening supply by 2%. The SEC case concluded in August 2025 with a $50 million penalty, yet CLARITY Act delays add uncertainty. Overall, global liquidations hit $713 million in 24 hours, but XRP open interest rebounded 12% post-flush, clearing overheated leverage for a potential relief rally.

XRP plunged 4% to $1.61 on January 31 amid crypto's $2B wipeout, with $7M in XRP-specific liquidations — 99% longs, hammering derivatives per @XrpUdate. Price hit $1.698 intraday low after breaching $1.79 support, volume spiked to 3.94B tokens.

This altcoin cascade amplified broader BTC/ETH pressure.

XRP Price Prediction: $7M Liquidations Spike Eyes $1.85 Bounce

Liquidation Mechanics

Coinglass data shows long/short ratio at 99:1, with $6.93M longs liquidated vs. $70K shorts.

Heatmap peaks align with $1.82 break, flushing 72% correction leverage. Open interest dropped 15%, funding rates turned negative (-0.01%), signaling capitulation reset. XRP's thinner books (vs. BTC) caused outsized volatility.

Chart Analysis Expanded

Analyst @XrpArab's chart shows XRP holding 61.8% Fibonacci retracement from recent 72% correction lows. Blue momentum arrow signals wave (iii) upside continuation, with EMAs aligning bullishly. Key resistance at $1.82-$1.85; hold above $1.80 targets $1.95. Invalidates below $1.74, risking $1.60 demand zone.

This deleveraging follows XRP's January rally from $1.84 to $2.41 early-month, now paused amid macro risk-off. Ripple CEO eyes ATHs in 2026 via ETF inflows ($640M YTD) and reduced exchange supply. Wall Street analysts split: some target $8, others warn $1.24 on breakdowns.

Macro Backdrop and News Catalysts

Ripple Treasury launched post-$1B GTreasury acquisition, enabling firms to manage fiat, stablecoins (RLUSD), and XRP in one dashboard, unlocking 24/7 liquidity via on-chain markets. XRP spot ETFs drew $16.79M inflows Jan 30 (21Shares $8.19M, Bitwise $3.91M), pushing total NAV to $1.19B and historical inflows to $1.18B amid ETF hype.

CEO Garlinghouse predicts crypto ATHs in 2026 via U.S. regs and institutional adoption (BlackRock/Vanguard); bulls target $8 (Standard Chartered) to $12.50 by 2028, bears $1.24-$1.50 on breakdowns. Escrow locked 500M XRP (~$870M) until 2028, cutting circulating supply ~2% and tightening dynamics. SEC case resolved Aug 2025 ($50M penalty), but CLARITY Act delays (to mid-2026?) add uncertainty.

Global liquidations hit $713M/24h, yet XRP OI rebounds 12% post-flush.

Post-liquidation reset clears overheated leverage, setting stage for relief rally. AI models forecast $1.92 average by Jan 31 close, with Binance predictions at $1.65 near-term stabilizing to $1.65-$2.34 in February. Long-term, cycle models see $9-12 if ascending channel intact. RSI oversold supports $1.85 test soon.

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Tags:

#On-chain #ETF #Stablecoins #Liquidation

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