Ripple (XRP) is navigating a precarious market environment, currently trading near $1.45 after shedding significant value from its early January highs of over $2.40. As broader crypto markets face headwinds and leveraged positions unwind, the token is approaching a critical psychological floor at $1.00. Data indicates that expanding Open Interest (OI) amidst falling prices is creating a fragile market structure, raising the stakes for bulls. Traders are now keenly watching to see if this leverage-driven decline will find a floor or if a breakdown of the $1.15 level will trigger a cascade toward parity.

Why is $1 the critical support level for XRP?

The $1.00 level represents more than just a psychological barrier; it serves as a historical demand zone where substantial accumulation has occurred in previous cycles. However, the current technical structure is concerning for bullish investors. Recently, XRP slid below $1.60 as selling pressure intensified across crypto markets, effectively turning that former support zone into a formidable resistance level. The price action has been printing a series of lower highs, sliding from the $3.50 expectations down toward the $1.50 zone.

Market analysts note that if the immediate support around $1.15 fails, the lack of significant volume profiles between there and $1.00 could lead to a rapid accelerated move. This fragility is underscored by the current positioning of derivatives traders who appear to be betting on volatility rather than a straightforward recovery.

What do momentum indicators signal for XRP?

Momentum oscillators on the daily chart currently paint a picture of caution, reflecting the mounting pressure beneath the price action. Funding Rates, which had previously hovered near neutral, have shifted slightly negative, indicating a lack of aggressive aggressive buying interest.

Much like how Ethereum tested key support as technical and on-chain signals converged, XRP is seeing a confluence of bearish indicators. The Daily Relative Strength Index (RSI) is trending at 38 , though not yet deeply oversold enough to guarantee an immediate bounce.

Source: TradingView

Liquidation zones and derivatives positioning

A concerning divergence has emerged between XRP鈥檚 price action and derivatives activity. According to crypto analyst Maartun, Open Interest expanded by roughly +12% recently, even as prices weakened. Rising OI into a falling price typically signals speculative leverage entering short exposure or late longs attempting dangerous dip entries.

XRP: Open Interest jumped +12% while price crashed -20% today 馃搲 pic.twitter.com/O5Fj9mqWtU

鈥?Maartunn (@JA_Maartun) February 5, 2026

This setup increases market fragility rather than stabilizing it. It mirrors scenarios where liquidations hit crypto markets during high-leverage flushes. If price compression continues without spot accumulation, a 鈥渓ong squeeze鈥?could accelerate a move lower, targeting the liquidation clusters resting below the $1.15 mark.

How Bitcoin weakness impacts XRP downside risk

XRP鈥檚 trajectory is heavily influenced by the broader market, particularly Bitcoin鈥檚 performance because some firms are predicting Bitcoin crash. With the market leader struggling to regain momentum, altcoins face amplified downside risk due to their higher beta. While traders had previously identified bull support zones around $1.8, the loss of these levels aligning with macro weakness has emboldened sellers. Despite nearly $1.37 billion in XRP ETF inflows since late 2025, spot demand has yet to overpower the leverage-driven sell-side pressure.

What could invalidate the bearish setup?

For the bulls to negate the immediate bearish thesis, XRP needs to reclaim the $1.50 level with conviction. A high-volume daily close above this zone would disrupt the pattern of lower highs and potentially target a retest of $1.80. Market analysts suggest that reclaiming $1.60 is essential to confirm a trend reversal. Until then, any relief rallies are likely to be viewed as selling opportunities by active traders.

Bitcoin Hyper: An Alternative to XRP

Following analysis of XRP鈥檚 price outlook, attention has also turned to infrastructure efforts focused on expanding Bitcoin鈥檚 functionality within decentralized finance. Bitcoin Hyper (HYPER)聽is one such initiative, positioning itself as a Solana-based Layer-2 that enables smart contract execution and higher-throughput applications, while settling transactions back to the Bitcoin network.

The project aligns with the broader BTCFi narrative, which explores extending Bitcoin鈥檚 utility beyond value transfer without altering its base protocol. According to publicly disclosed figures, the Bitcoin Hyper presale has raised approximately聽$31.2 million聽to date.