10 Feb, 2026
2 minutes
XRP has fallen into a phase of downward pressure, with traders and long-term holders very much in doubt over the sudden change in momentum. This pullback happens when Ripple is still extending its institutional partnerships, putting it in a better regulatory position and laying the groundwork for integrations in different payment corridors all over the world. However, its price is falling back, which often contradicts what may be described as the project's strong fundamental and short-term market performance.
This divergence has sparked renewed debate: Why is XRP dropping today? What is causing and why Ripple price is going down despite positive ecosystem developments? And why is the market reacting this way right now?
Below, in this overview for 2026, we break down the structural, behavioral, and technical factors in play for why is XRP price dropping today, and what that means for today's downturn on the broader market outlook of the asset.
One of the main causes that immediately led to the depreciation of XRP was the renewed momentum of profit taking among long-term XRP holders. numerous early investors have accumulated XRP at significantly lower price points so that they see these recent rallies as a good opportunity to lock in profits.
On-chain evidence for 2026 indicates a significant spike in realised profits, with profit-taking reaching its peak in weeks. Old wallets with significant balances, some having been inactive for several years, started to dispense some of their profits into the market. It is this activity which instigates a dominating force exerted upon the market on the sell-side when anything positive reaches the community.
This brews a common problem: when the original investors leave their space, newer retail investors are unable to fill that void, which drives the price further downward.
The end result is that the market in which XRP finds itself is one that prioritizes the massive amount of long-term distributions of XRP, to the point that it is a significant factor for why is XRP dropping so much, despite the optimistic outlook on Ripple's progress.
Another significant reason for the current fall of XRP is the continued process of deleveraging that is going on within the crypto derivatives market. Following the high volatility occurrences seen earlier this year, traders have substantially reduced their exposure-thinning speculative demand, which has been an essential part of the previous rallies seen for XRP.
There was a steep tailing off of the open interest in XRP on the major exchanges, and the funding rates turned neutral or negative, suggesting an unwillingness to take leverage longs. A reduction in leverage tends to see momentum assets like XRP lose the strong price momentum.
There are several reasons that have contributed to the trend of deleveraging:
In previous liquidations, traders had to close out their long contracts, which drained the fuel that normally propels further gains.
Lower leverage ratios are a prudent market where traders exercise restraint in their actions, preferring the preservation of capital over taking risks.
This is due to the decrease in liquidity in the derivatives market, and as a result, down-side volatility is accentuated by fewer people who buy to stem off heavy sales.
This kind of derisking helps to explain why is Ripple going down today despite there being no negative news. There will be fewer people to bet on a leveraged long position, which makes it highly sensitive to selling pressures.
Apart from the market structure, the recent fall of XRP is heavily influenced by the evident technical breakdown on the charts. Following several attempts to break through specific levels of resistance, XRP lost steam and generated a series of technical sell signals.
The price broke below a crucial support level earlier last month and solidified that there was a transition from a bullish to a bearish market structure. The price break triggered stop loss liquidations and algorithm-driven selling, which further fueled the high-pressure selling.
Several tech-related reasons are backing the fact that XRP is falling today:
There were signs of exhaustion in buying due to repeated rejections around the area of resistance located near key Fibonacci levels.
As a consequence of a clear fall below mid-range support, liquidity dried up and helped to drive prices down even quicker. Liquidity is essentially the ease and speed with which
Bearish moving average crossovers, such as the 50-day moving average crossing below the 200-day moving average, indicated weakness in the trend.
This is evidence of active selling rather than mere trending on red candles since volume distinctly spikes on red candles.
As far as many traders were concerned, these technical indicators changed their expectations from a continuation to a correction. While XRP is below the regions that were broken, the path of least resistance is still weak.
One of the factors that is significantly affecting the depreciation of XRP is the reduction in available liquidity on centralized markets. For a period of several months, a considerable pool of XRP has been swapped over to self-custody wallets, custodial solutions, and OTC settlement channels. Although confidence is a positive sign, so is this redistribution, which impacts markets in a different manner.
As a consequence of decreased exchange balances, there is a lack of active liquidity. This results in more extreme changes in price actions, but in phases with strong sell momentum, it could accentuate bearish actions. Because of these factors, and due to shifts in focus to Bitcoin ETFs and other narratives-driven assets, XRP faces a temporary period of withdrawal of speculation.
Some of the main liquidity trends responsible for this downtrend are:
This implies that XRP held on exchanges was at a multi-year low, thereby reducing the depth available to absorb sell pressure.
Taker buy volume decreases across major exchanges, reflecting weaker active demand from short-term traders.
Capital rotates into Bitcoin, Ethereum and into AI tokens, among other hot sectors, while leaving altcoins such as XRP with weak inflows.
Negative taker buy/sell ratios indicate constant market sell order dominance.
These changes in liquidity do not necessarily mean weakened fundamentals. They definitely render this asset more sensitive to sell-off pressure, hence explaining why is XRP price dropping today more considerably in the course of market corrections.
The current drop seen in XRP is more a function of market dynamics, as opposed to issues with the tech, adoption, or regulatory environment for Ripple. The main drivers for the market, currently, are taking profits, the reset of leverage, technical analyses, and the flow of liquidity, all of which are underway even as Ripple increases institutional engagement.
The situation echoes a transition in market cycles, where it is common for markets to move from speculative to strategic accumulation. It is apparent that long-term investors have opted to book gains while institutional investors wait for more favorable entry points.
Decreased exchange balances affect the volatility of XRP in two ways:
Reduces the sell-off pressure, which may allow for better future rebounds
Price sensitivity increased, where not many sales orders trigger extreme price movements
This two-fold explanation accounts of why is XRP dropping so much despite good on-chain activity.
It would now retest support levels, according to some short-term technical models, while the macro analysts stress that the catalysts for the next bounce might come from increased institutional adoption when the market conditions become more constructive. This divergence underlines that investors should match their decisions with their risk profiles and not with noise in the market.
XRP's decline should be put into perspective: Price action responds to structural mechanics, not a collapse in fundamentals. Long-term investors may view volatility as part of the greater cycle, and for the active trader, the market should be approached with heightened risk management as conditions remain fluid.
XRP is falling because of profit-taking on positions accumulated in previous years, decreased leverage in the derivatives market, and overall trading liquidity. These factors have a compound effect that contributes to diminishing prices even when fundamentals remain strong.
It seems that positive developments have not yet generated buying momentum because many speculators who acquired the coins in the previous rally are currently selling, while spec demand is weak. Market rotation in Bitcoin, as well as in trending markets, steals capital away from XRP.
The fall in the price of Ripple can thus be attributed to technical analysis breakdowns, bearish signals in the charts, as well as low liquidity within the exchanges.
The fall in price is deepened by:
Lack of leveraged long positions supporting the market
Key support failures
Thin liquidity on the exchanges
Increased selling by long-term holders
Combined, these factors produce more pronounced short-term downturns.
Strength in the fundamentals has been reinforced by regulatory victories, but market structure determines price trends in the short term. At present, a lack of strong demanding purchases, sector profit-taking, and sectorwide derisking are being driven by a supportive regulatory atmosphere.
If demand comes back or new supply hits the market will help in recovery. In any case, analysts have been split, with downside targets in the mid-$1 range, while upside estimates range from $5+ based on institutional trends. It is wise for investors to assess their risk levels rather than trying to time market fluctuations.
XRP is falling because of profit-taking on positions accumulated in previous years, decreased leverage in the derivatives market, and overall trading liquidity. These factors have a compound effect that contributes to diminishing prices even when fundamentals remain strong.
It seems that positive developments have not yet generated buying momentum because many speculators who acquired the coins in the previous rally are currently selling, while spec demand is weak. Market rotation in Bitcoin, as well as in trending markets, steals capital away from XRP.
The fall in the price of Ripple can thus be attributed to technical analysis breakdowns, bearish signals in the charts, as well as low liquidity within the exchanges.
The fall in price is deepened by: - Lack of leveraged long positions supporting the market - Key support failures - Thin liquidity on the exchanges - Increased selling by long-term holders Combined, these factors produce more pronounced short-term downturns.
Strength in the fundamentals has been reinforced by regulatory victories, but market structure determines price trends in the short term. At present, a lack of strong demanding purchases, sector profit-taking, and sectorwide derisking are being driven by a supportive regulatory atmosphere.
If demand comes back or new supply hits the market will help in recovery. In any case, analysts have been split, with downside targets in the mid-$1 range, while upside estimates range from $5+ based on institutional trends. It is wise for investors to assess their risk levels rather than trying to time market fluctuations.
