XRP traded lower on Tuesday, falling roughly 2.7% to hover around the $1.40 mark. This move brings the token close to a significant near-term support level that market participants are watching closely. A sustained break below this threshold could signal potential for further declines in February.
The broader cryptocurrency market has faced headwinds, with its total valuation declining approximately 10% this month to about $2.4 trillion. Major assets like Bitcoin traded near $69,000, while Ether held around $2,000.
Despite the market-wide pressure, U.S.-listed spot exchange-traded funds for XRP recorded net inflows of $6.3 million on Monday. Cumulative inflows for these products have reached $1.23 billion, with assets under management standing at $1.04 billion.
Analysts note that XRP has entered a period of lower volatility following a recent sell-off, with momentum constrained by leverage unwinding and macroeconomic concerns. Technical analysts point to Monday's low of $1.3724 as a key downside level, maintaining a cautious outlook while the token remains below its recent high near $1.5406.
Ripple, the firm closely associated with XRP, announced new partnerships with Securosys and Figment to expand its institutional custody offerings, adding hardware security modules and staking services. The company emphasized the need for secure key management and cohesive systems for institutional clients.
Market attention is also turning to an "XRP Community Day" event scheduled for February 11-12. The virtual gathering, hosted on X Spaces, will feature discussions on regulated products, exchange-traded funds, tokenized versions of XRP, and decentralized finance. Ripple CEO Brad Garlinghouse and President Monica Long are slated to appear.
As a 24/7 trading asset, XRP has recently exhibited higher volatility than Bitcoin, reacting sharply to shifts in market sentiment. The immediate risk scenario involves a further reduction in leverage or a broader pullback in risk assets pushing XRP decisively below $1.40, potentially turning that level into resistance.
Traders are now focused on whether the upcoming Ripple event yields new product or partnership announcements and if the trend of ETF inflows persists in the coming sessions. For the moment, the $1.40 price point remains the primary technical level under scrutiny.
