The bearish sentiment gripping the cryptocurrency market on Thursday, Feb. 5, saw XRP log one of its steepest 24-hour declines of 2026. The crash left the digital asset’s market capitalization at levels not seen since late 2024. Market data shows that XRP, which began the day trading above $1.50, tumbled to $1.22 amid a broader sell-off that also saw bitcoin tap its lowest price in over a year.

Although it pared minor losses to settle around $1.26 by 11:35 a.m. EST, XRP’s 15% intraday plunge wiped out a significant portion of its market value, bringing its capitalization to $80 billion. Over the past seven days, XRP’s losses have neared 30%, making it one of the market’s worst performers. Since its Jan. 6 peak of $2.40, the asset has retreated by more than 45%.

This volatility triggered a massive “flush” in the derivatives market, resulting in the liquidation of $43 million in long bets and approximately $4.2 million in short positions.

While XRP followed the downward trend of bitcoin and other high-cap altcoins, its descent was accelerated by a wave of bearish sentiment on social media. Influential users, such as Wealthmanager, warned holders to exit their positions immediately. Though many dismissed these posts as alarmist, the resulting fear-mongering seemingly contributed to the heavy selling pressure. Surprisingly, even net positive inflows into XRP spot exchange-traded funds (ETFs) were unable to stall the downward momentum.

Read more: ‘I’ll Keep Buying’: Dave Portnoy Doubles Down on XRP as Price Falls

According to Ryan Lee, chief analyst at Bitget, XRP’s breakdown below key support levels reflects intensified short positioning rather than a single fundamental failure.

“One notable technical driver has been the loss of critical support zones, with price plunging below levels that had previously anchored the market. Chart structure now shows bearish continuation patterns and declining liquidity, which can exacerbate drops when sellers overwhelm absorption,” Lee explained. “Broader market forces, including negative sentiment around risk assets and weak demand for altcoins relative to bitcoin, have also kept downward pressure on XRP.”

Lee identified two primary catalysts behind the accelerated move. He said leveraged positioning and elevated short exposure have compressed price action, turning a standard dip into a steep slide. Additionally, a risk-off environment—driven by geopolitical and interest-rate uncertainty—has reduced the appetite for “high-beta” assets like XRP, as investors favor the relative safety of bitcoin or gold during market repricing.

• What happened to XRP on Feb. 5? XRP plunged 15% in 24 hours, dropping to $1.22 before settling near $1.24.
• How did this affect XRP’s market cap? Its capitalization fell to $80B, the lowest since late 2024.
• Why was XRP hit harder than other altcoins?
  Loss of key support levels, heavy short exposure, and bearish sentiment accelerated the slide.
• What global factors added pressure? Geopolitical risks and interest‑rate uncertainty pushed investors toward safer assets like bitcoin and gold.

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