XRP slips to multi-month lows as liquidity ramps up in the market.
XRP slipped to $1.5 amid widespread crypto salesoff and $2.5 billion in liquidity, before a modest rebound. Heavy liquidity, weak volumes and hidden indicators make XRP's recent technical outlook weak. Ripple received EU EMI approval in Luxembourg, boosting its regulatory base despite XRP's volatility.
XRP slipped sharply over the weekend as widespread risk-averse action seeped into cryptocurrency markets, triggering massive liquidity and sending it to its lowest level since December 2025.
The gains came alongside sharp declines in Bitcoin, Ethereum and traditional safe-haven assets like gold and silver, underscoring the deepening of the market.
The upheaval comes as Ripple, a payment firm closely linked to XRP, secured a key regulatory milestone in Europe after receiving final approval from Luxembourg's electronic money institution.
XRP slips to multi-month lows amid broad market selloff
XRP is trying to stabilize its price after a week at the weekend as bearish pressure swept through the cryptocurrency markets.
After failing to sustain the gains made around $1.8, the token fell to its lowest level since December 2025.
The decline comes amid broader market turmoil that has seen bitcoin slide below $75,000 and Ethereum fall to $2,100, sending most major altcoins lower.
Risk prevention measures extend beyond crypto.
Gold, which recently rose above $5,500 an ounce, fell to around $4,620, its biggest one-day drop in more than a decade, while silver suffered heavy losses.
It sold more than 2.5 billion dollars
Selling pressure intensified as the US entered a partial government shutdown, while markets showed little reaction to President Donald Trump's nomination of Kevin Warson as the next chairman of the Federal Reserve.
Warsh is widely seen as a proponent of digital assets.
More than $2.5 billion of leveraged positions in crypto markets were executed on January 31.
According to Coinlas, this is less than the $19 billion seen in the October 10, 2025 crash, but it ranks as the 10th largest liquidity event on record.
On-chain data shows that more than $10 million in XRP positions have been liquidated in the past 24 hours, with about $7.4 million in long positions.
According to CoinGlass data, more than 4,300 traders were affected, the daily volatility of XRP exceeded 7.5%.
Some market participants have blamed Binance's lawsuit for fueling the selloff, though the exchange and its former CEO, Changpeng Zhao, have denied those claims.
The technical outlook is poor despite a modest refresh.
XRP's market capitalization fell to about $97 billion, reflecting a sharp contraction as investors pulled out of risk assets.
Daily trading volume fell 16 percent to $5.4 billion, reflecting weakening liquidity and limited buying interest.
From a technical perspective, the daily chart remains broadly bearish.
While the relative strength index suggests a possible rebound from oversold levels, weak momentum may limit the upside.
MACD continues to indicate strengthening bearish conditions, with the histogram widening.
As of Monday, February 2, XRP was trading near $1.6, recovering from a weekend low.
A sustained break below $1.5 could pave the way to the $1.24 support area.
On the downside, a pullback above $1.8 could stabilize sentiment and retest the $2.00 to $2.30 range.
Ripple secures EU EMI license in Luxembourg
Ripple has received final approval from Luxembourg's financial regulator to obtain a full electronic money institution license, reversing an initial license granted in January.
Permission granted, by Financial Sector Regulatory Commissionenables Ripple To regulate blockchain-based payments and digital asset services in the EU.
The approval builds on Ripple's recent regulatory findings in the UK. Financial Conduct Authority It granted the company an EMI license and a crypto asset registration, reinforcing its European expansion strategy.
