XRP Crashes 17% in a Day as $46M in Long Positions Are Liquidated

XRP experienced a brutal selloff on February 5-6, 2026, plunging approximately 16-17% in its steepest one-day drop since late 2025, as reported by CoinDesk, Yahoo Finance, and other sources. The token tumbled from levels around $1.51 (pre-selloff) to intraday lows near $1.13-$1.15, before partially recovering to close around $1.47 on February 6 amid high trading volume exceeding $11 billion (CoinMarketCap historical data).

The sharp decline was amplified by heavy liquidations in derivatives markets, with CoinGlass data confirming roughly $46 million in XRP positions wiped out over 24 hours—predominantly long positions (about $43 million), as bullish traders betting on continued upside were caught off-guard when key support levels (around $1.44) broke and flipped to resistance. This triggered a cascade of forced selling, exacerbating the downside momentum.

The move occurred amid a broader crypto market rout, with Bitcoin dipping toward $60,000-$70,000 ranges and altcoins like Ethereum and Solana also posting double-digit losses. Contributing factors included risk-off sentiment from rising U.S. bond yields, a stronger dollar, profit-taking after XRP’s prior rally (from earlier highs near $2.40+ in January), and macro uncertainty pressuring risk assets globally. Ongoing regulatory overhang from Ripple’s legal matters added caution, though no major new negative developments surfaced. Large wallet transfers to exchanges fueled speculation of whale selling.

Funding rates turned negative post-liquidations, signaling deleveraging and reduced leverage exposure, which some analysts view as a healthy reset to clear overheated bullish bets and potentially limit further downside.

Despite the pain, XRP staged a notable rebound on February 6-7, climbing up to 18-20% in relief rallies to around $1.47-$1.49, outperforming peers in the bounce (per CoinDesk and Sherwood News). Sentiment remains fragile near-term, with traders watching psychological supports like $1.20-$1.30 and broader market cues. As of February 9, 2026, XRP trades around $1.43-$1.45, reflecting ongoing volatility but signs of stabilization after the flush. Investors should exercise caution, prioritizing risk management amid elevated choppiness.