XRP News Summary - February 5, 2026
Author: Yashu Gola
Published: February 5, 2026, 08:40 GMT+00:00
Key Highlights
- XRP fell approximately 5.25% to around $1.43, marking its lowest level in four months.
- The decline was influenced by a significant drop in the Nasdaq Composite, reflecting weakened investor risk sentiment.
- On-chain data indicates a surge in XRP's total supply in loss, with holder stress reaching levels last seen in October 2024.
Market Context
The XRP token, associated with Ripple, experienced a notable decline as the broader tech sector faced a rout, particularly impacting the Nasdaq Composite. This downturn was exacerbated by rising capital expenditures related to AI among major tech firms like Alphabet and Oracle, leading to a negative shift in investor sentiment.
XRP's Performance and Holder Sentiment
As of February 5, XRP's price dropped to $1.436, closely mirroring the declines seen in the cryptocurrency market, particularly with Bitcoin dipping towards $70,000. The on-chain data from Glassnode revealed that a significant portion of XRP holders are now at a loss, indicating heightened stress among investors.
Historically, XRP has shown resilience following significant downturns, such as the rally after Donald Trump's election win in November 2024. However, the current macroeconomic conditions appear less favorable, with concerns about an AI bubble impacting equities and crypto markets alike.
Technical Analysis
Current technical indicators suggest that XRP is testing critical support levels. The token is near its realized price of approximately $1.47, which has historically marked significant price movements. The MVRV (Market Value to Realized Value) pricing bands indicate that sustained trading below the realized price could lead to further declines, potentially reaching levels around $1.15.
Despite the bearish outlook, long-term holders are beginning to accumulate XRP during this pullback, which could signal a potential stabilization in the market. The four-hour chart shows a bullish divergence, suggesting a possible short-term rebound, with resistance levels identified at $1.57 and higher.
Conclusion
While XRP faces significant downward pressure amid a challenging macroeconomic environment, the accumulation by long-term holders and technical indicators hint at a potential for stabilization. However, the overall sentiment remains cautious, with further downside risks if key support levels are breached.