XRP price slides as crypto selloff deepens and XRP news turns macro-driven

XRP fell sharply on Thursday, Feb. 5, 2026, extending a broad crypto downturn that has been driven more by macro risk-off positioning than by a single XRP-specific shock. The move has put renewed focus on where demand is coming from in 2026—spot buying versus leveraged trading—after XRP’s strong start to the year gave way to a fast reversal.

As of late morning Thursday (ET), XRP was trading around the mid-$1.20s after a steep 24-hour drop, with trading activity elevated as sellers pushed the token through key near-term support levels.

XRP price today: the numbers traders are watching

XRP’s decline came with heavy turnover, a sign that the move isn’t just thin-liquidity wobble. The selloff also widened intraday ranges, with quick rebounds getting sold into rather than sustained.

These figures matter because they frame the next question: is this a momentum flush that stabilizes once forced selling fades, or the start of a longer re-pricing in which rallies keep failing.

What’s driving XRP news right now: it’s mostly the macro tape

The biggest driver behind today’s XRP move is the broader risk environment. Crypto has been trading like a high-beta risk asset, and the week’s market tone has favored capital preservation—especially after sharp swings in tech and momentum pockets. In that kind of tape, large-cap tokens often fall in tandem, and XRP has been moving with that tide.

That dynamic also explains why many headlines feel repetitive: they center on market stress, derivatives liquidations, and shifting expectations around rates and liquidity. The key point for XRP holders is that macro selloffs tend to overwhelm token-specific narratives in the short run.

Leverage and liquidations: why declines can accelerate fast

In fast down-moves, crypto’s structure can amplify price action. When leveraged longs are forced to close, selling becomes mechanical rather than discretionary. That can create the familiar pattern: a sharp drop, a bounce that looks like a reversal, then another leg lower when liquidation pressure returns.

This is where the intraday range matters. Wide ranges signal that the market is “searching” for a price where buyers are willing to absorb inventory. If that absorption is weak, XRP can drift lower even without bad XRP-only news.

Regulatory clarity helps, but it doesn’t prevent drawdowns

A key medium-term tailwind for XRP entering 2026 has been reduced U.S. regulatory uncertainty relative to prior years. That’s supportive because it can expand the potential buyer base and make it easier for institutions to participate without headline risk.

But regulatory clarity doesn’t immunize a token from a broad market deleveraging. In practice, it tends to show up as stronger participation during calmer stretches—and as faster recoveries after risk-off events—rather than as a shield during the event itself.

On-chain signals: activity remains a debate, not a verdict

Some on-chain indicators have been pointing to improved network activity in early February, including measures tied to token “velocity” that suggest increased movement on the ledger. Bulls read that as a sign the network is being used more actively, which can support the long-term “real utility” story.

Skeptics push back that activity metrics can rise during speculative churn and exchange-related movement, not just from real-world payments usage. The practical takeaway is that on-chain strength, even when real, can lag price in the short term—especially when macro forces are dictating flows.

What to watch next: levels, flows, and timing catalysts

The market now has three near-term tells:

First, whether XRP can hold the mid-$1.20s to low-$1.30s zone without repeated breakdowns. Stabilization typically shows up as smaller candles, reduced volume on down days, and rallies that don’t immediately fade.

Second, whether spot demand begins to outweigh leveraged positioning. That often becomes visible when intraday dips get bought quickly and open-interest-driven cascades become less frequent.

Third, the calendar. If broader markets remain volatile into mid-February, crypto can stay under pressure regardless of project-level narratives. If risk sentiment improves, XRP’s combination of large-cap liquidity and reduced regulatory overhang could help it rebound faster than smaller tokens—but only if buyers return.

Sources consulted: CoinMarketCap, Yahoo Finance, CoinDesk, Nasdaq