XRP experienced a visible drop in trading activity. This was influenced by broader market pressure, coupled with a price decline below a key support zone. The asset has now seen a significant price correction, recording a 17.78% increase in the last 24 hours, but the initial decline has already prompted discussions among market participants.
Analyst Scott Melker, known as the Wolf of All Streets, highlighted that the asset’s initial decline was sharper than that of other tokens due to its decline into a price zone with limited buying interest.
$XRP UPDATE
Clear breakdown, now in the air pocket, which is why it is dumping harder than most.
Weekly 200 MA is at around $1.10, but this "key level' has failed quickly for most alts.
Most support is under $1. https://t.co/ZU8LT5CQEg pic.twitter.com/fluahU9daF
— The Wolf Of All Streets (@scottmelker) February 5, 2026
Broader Market Decline
The recent market downturn has weighed heavily on major cryptocurrencies, with Bitcoin experiencing significant losses. Over the past week, BTC fell below $66,000, realizing approximately $889 million in losses, recording its second-largest capitulation event since 2022. Prices continued downward, pushing Bitcoin below $65,000 and influencing wider market performance. As a result, altcoins, including XRP, have been seriously affected.
XRP is currently trading at $1.49, but before this correction, the token had initially declined to roughly $1.20, a level that coincided with the weekly chart’s horizontal support trendline at $1.61 being broken. According to Melker, the initial zone represented an “air pocket,” where there is minimal buying pressure.
Such conditions typically result in more rapid declines compared to assets that remain above well-supported levels. The analyst noted that this was the reason XRP is falling more aggressively than many other cryptocurrencies, including BNB and Cardano, despite outperforming Ethereum slightly year to date.
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Reviewing Historical Data
Historically, the $1.61 level has served as an important support zone. It acted as a base during the April 2025 sell-off and the October 2025 drop, absorbing downward momentum and balancing price action. After reaching a high of $1.93 in late January, XRP briefly relied on this support before the latest wave of selling overwhelmed the zone, forcing prices to drop into the air pocket.
Melker also identified the 200-week moving average at $1.10 as the next potential support for XRP. However, the analyst warned that similar long-term averages have recently failed to stop bearish trends in other major altcoins. For example, Ethereum breached its 200-week MA at $2,456 last week, and Solana fell below its 200-week MA at $103, showing that these indicators may not provide sufficient protection against ongoing market pressure.
Melker suggested that significant support for XRP may only exist below the psychological $1 level, a price point that has not been seen since the November 2024 rally. Based on current price levels, XRP would need to drop over 32% to reach this threshold.
While XRP has rebounded significantly within a short time, the token still sits below the $1.61 key support zone. The rebound indicates reduced selling pressure and increased investor confidence, but the token’s price direction remains uncertain.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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