XRP could slide to $1.00 as support breaks; options hedging jumps
Payments-focused cryptocurrency XRP dropped to $1.44, marking its lowest price since November 2024, after breaking below a key demand zone near $1.60. This breakdown signaled weakening buying interest and added to bearish sentiment around the token. The decline reflects increasing pressure in the broader crypto market, where investors have turned cautious amid heightened volatility.
The sell-off comes as Bitcoin’s pullback triggers a wider risk-off environment, with traders seeking protection through options hedging. Market analysts note that technical support for XRP is now limited, increasing downside risk. If selling momentum continues and buyers fail to regain control, XRP could face a deeper correction, with some analysts warning of a possible drop toward the $1.00 level in the near term.
Market Snapshot and Levels
Price & trend
XRP has dropped ~20–25% over the past week and now hovers near $1.44.
Key levels
The loss of $1.60 a level that caught April’s sell-off—leaves limited chart support until the $1.00 psychological handle.
Momentum
Weekly structure has weakened with lower highs since a mid-2025 peak; bears control near-term flow.
Sentiment & Derivatives
Options activity on Deribit highlights rising interest in put spreads and strangles, signaling traders are hedging downside and bracing for volatility. Deribit remains the dominant venue for crypto options, so its flow often steers sentiment.
Macro & Narrative Context
XRP’s slide tracks a broader drawdown across digital assets as macro headlines stoke risk aversion. Recent market coverage tied crypto weakness to U.S. policy and rate expectations; bitcoin and majors have retreated from late-2025 highs.
XRP, used by Ripple for cross-border settlement, had initially benefited from a pro-crypto policy narrative around Donald Trump’s 2024 victory, but that rally faded through 2025.
Technical Focus: Why $1.60 Mattered
The $1.60 area acted as a former demand zone during the April sell-off; a decisive break suggests sellers now dominate. Order-book and volume profiles show light historical activity between $1.60 and $1.00, creating an “air pocket” that can accelerate moves. Charting platforms such as TradingView reflect the loss of intermediate supports.
XRP could slide to $1.00
If bears press the advantage, the path of least resistance points toward $1.00. A swift reclaim of $1.60–$1.70 on strong volume would be the first sign that downside momentum is fading. Until then, derivatives hedging and thin support argue for caution.
What would invalidate “XRP could slide to $1.00”?
A reclaim of $1.60 with rising volume and positive funding, plus cooling options skew, would weaken the bearish call. Watch for breadth improvement across majors and a reduction in put demand on Deribit.
Trading setups if “XRP could slide to $1.00” plays out
Trend-follow
Trail stops above lower highs; avoid counter-trend blades.
Mean-revert
Only after a capitulation wick into $1.05–$0.98 with strong bounce signals.
Hedge
Debit put spreads to define risk during volatility expansions.
(For reference pricing and charts, see TradingView; for flow context, monitor Deribit’s options board.)
Context & Analysis
XRP’s drawdown combines technical fragility (lost demand zone) and macro sensitivity (rates, dollar). With options markets increasingly pricing downside and volatility, path dependency matters: each failed bounce can invite fresh hedging and mechanical selling. Conversely, any broad crypto relief e.g., bitcoin stabilizing could spark a sharp mean-reversion rally.
Bottom Lines
Until buyers reclaim the $1.60 level, downside risk remains dominant, with $1.00 acting as a key psychological support. Failure to move back above resistance suggests bearish momentum is still in control, and price action could stay under pressure in the short term. Market structure currently favors sellers unless strong buying interest re-emerges.
Traders are advised to stay cautious amid elevated volatility and manage risk carefully. Tight stop-loss strategies remain essential, while confirmation from options market skew and rising spot trading volume should be monitored closely. A sustained reversal is unlikely without clear signals of renewed demand and broader market stability.
FAQs
Q1 : Why did XRP drop to $1.44?
A : A broad crypto risk-off environment and a decisive break below the $1.60 demand zone accelerated selling pressure.
Q2 : Could XRP fall further could it slide to $1.00?
A : Yes. Thin technical support below $1.60 and increasing downside hedging activity raise the risk of a move toward $1.00.
Q3 : What would negate the bearish view?
A : A daily close above $1.60, supported by strong volume and easing options skew, would weaken the bearish outlook.
Q4 : How are options traders positioning?
A : Rising interest in put spreads and strangles on Deribit suggests bearish bias and expectations of higher volatility.
Q5 : Did Trump’s 2024 win affect XRP?
A : Initial optimism tied to pro-crypto rhetoric faded as the uptrend weakened through 2025.
Q6 : Is this investment advice?
A: No. Crypto markets are volatile manage risk carefully and do your own research.
Facts
Event
XRP drops to $1.44, loses $1.60 support; derivatives hedging risesDate/Time
2026-02-05T15:00:00+05:00Entities
XRP (crypto asset); Ripple; Deribit; TradingViewFigures
Price $1.44; key levels $1.60 / $1.00Quotes
(No direct quotes provided in raw text)Sources
CoinDesk XRP crashes to its lowest since Trump’s election win (URL below); Yahoo Finance syndication (URL below)