XRP has successfully maintained its position above $2 this week, as traders took advantage of the recent market correction to accumulate the altcoin. Investors on Korean exchange Upbit and Bybit were particularly active, as reflected in the rising cumulative volume delta (CVD) value, signaling strong buying interest.
Traders Swapped ETH for BTC and XRP Amid Market Downturn
XRP was among the cryptocurrencies that experienced a sharp decline during the recent sell-off, hitting a low of $1.78 on Feb. 3 after reaching a high of $3.08 on Feb. 1. However, the altcoin managed to reclaim and close above the crucial psychological threshold of $2. A market analyst, known as ltrd, highlighted that Korean traders played a key role in XRP’s swift recovery. In a post on X, the analyst pointed out that these investors were aggressively accumulating XRP and BTC while offloading their ETH holdings during the downturn.
“Even more interesting is that they did so consistently over the entire period, not just at a specific moment—they were actively swapping ETH for BTC and XRP,” the analyst noted. A closer analysis suggests that a significant number of buy orders were placed below the $2 mark, as evidenced by the sharp increase in CVD between 2:00-3:00 UTC on Feb. 3. XRP briefly dipped to $1.78 before swiftly rebounding and closing above $2.15 within the same hour. Although Asian spot traders have helped sustain XRP above $2, data from CryptoQuant indicates that whales may be offloading portions of their holdings. Over 15,008 transactions took place within the last 24 hours, with more than 180 million XRP tokens moved to Binance. This marks the largest number of whale-to-exchange transfers since Jan. 8.
XRP Open Interest Plummets 44% in February
While spot traders capitalized on the price drop, the futures market saw a major shakeout. A flash crash wiped out a substantial portion of XRP futures open interest (OI), with a sharp 44% decline in February. OI fell from a high of $6.35 billion on Feb. 1 to $3.55 billion, reaching its lowest levels since November 2024. This complete flush of leverage positions over the past three months is further supported by a reset in the funding rate, suggesting that most traders are currently sitting on the sidelines.
From a technical perspective, XRP continues to trade lower within a descending channel, with both the 50-day and 100-day Exponential Moving Averages (EMA) acting as resistance. The altcoin is approaching a crucial daily order block, a zone between $2.20 and $2.33, where strong demand has historically emerged. Price action in this region will be critical, as it could determine whether XRP reverses its downward trajectory or continues its bearish momentum, potentially setting up another retest of the $2 level in February.
Conclusion
XRP has demonstrated resilience following its sharp decline, with aggressive buying from traders helping it recover above $2. However, whale movements and a sharp decline in open interest indicate a cautious market environment. The coming weeks will be crucial in determining whether XRP can sustain its current levels or face further downside pressure.
FAQs
Why did XRP drop below $2?
XRP experienced a sharp correction due to overall market volatility, with traders selling off holdings amid broader crypto market declines.
What caused XRP to bounce back above $2?
Korean traders, particularly on Upbit and Bybit, aggressively accumulated XRP during the dip, leading to a swift price recovery.
What does the decline in open interest mean for XRP?
The 44% drop in open interest suggests that leveraged positions were wiped out, indicating reduced speculative trading and a possible reset in market positioning.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
I believe that Web3 is not only a technological shift but a cultural and creative one. Strong ideas, thoughtful communication, and human-centered design will shape which technologies thrive and how communities evolve around them. My writing and research reflect this belief, focusing on clarity, relevance, and long-term perspective.
Professional Links Website: https://coinography.com LinkedIn: https://www.linkedin.com/in/tobyrothschild/
