XRP plummeted 17%, the largest single-day drop since 2025, with $46 million long positions liquidated, and the $1 mark at risk

February 6 News, affected by large-scale leverage liquidations, XRP once dropped over 17% in the past 24 hours, hitting a low of approximately $1.25, marking the largest single-day decline since 2025. In just one day, about $46 million worth of XRP derivatives positions were forcibly liquidated, with longs accounting for as much as $43 million, leading to a concentrated release of selling pressure at the end of the trading session.

This round of decline is not an isolated event. During the same period, Bitcoin retreated to around $65,000, Ethereum fell below $2,000, and Solana approached $82, with overall market sentiment turning notably bearish. XRP’s weekly decline has approached 30%, with a current market cap of about $75 billion, significantly down from the peak of approximately $210 billion in July 2025. Compared to the high of $2.41 in January 2026, the price has retraced by over 45%.

From a technical perspective, the key support level at $1.44 was broken and has turned into a short-term resistance. Stop-loss orders combined with forced liquidation mechanisms triggered a chain reaction. The $1.00 level has become a highly watched psychological threshold. Data shows that the total market liquidation on Thursday was about $1.42 billion, with over $1.2 billion in longs liquidated, reflecting a concentrated withdrawal of leveraged funds.

It is noteworthy that the sharp price volatility has not dampened institutional interest in XRP-related products. Since its launch in November 2025, XRP spot ETFs have maintained net capital inflows on most trading days, adding about $24 million this week, with total net inflows surpassing $1.2 billion. This contrasts with large single-day outflows from Bitcoin-related ETFs, indicating that some long-term funds are still positioning.

Fundamentally, Ripple recently achieved a breakthrough in European regulation, obtaining an EMI license from the Luxembourg financial regulator. After approval in the UK, the total number of global compliant licenses exceeds 75, allowing expansion of payment services within the EU. However, these positive developments have not yet offset the impact of risk aversion.

The current trend indicates that XRP’s short-term valuation is more influenced by market momentum and capital structure rather than a single regulatory development. Whether it can stabilize in the future still depends on macro risk appetite and the pace of derivatives de-leveraging.