XRP has managed to stay above $2 this week after a major market crash sent prices tumbling.
The cryptocurrency dropped from $3.08 on February 1 to a low of $1.78 on February 3 before quickly rebounding.
Analysts believe that Korean traders played a key role in the recovery, aggressively buying XRP during the dip.
Korean Traders Swap ETH for XRP
An anonymous market analyst noted that traders on Korean exchange Upbit and Bybit were swapping their Ethereum (ETH) for XRP and Bitcoin (BTC) during the sell-off.
The buying activity was consistent throughout the period, rather than a one-time event, helping XRP regain ground above $2.
According to trading data, many buy orders were placed below $2, and a sharp increase in cumulative volume delta (CVD) suggests that demand was strong. XRP’s price surged back to $2.15 within an hour after hitting its lowest point.
Whale Activity: Is a Sell-Off Coming?
Despite strong buying pressure, some large investors (whales) have been moving XRP to exchanges. Over the past day, more than 180 million XRP tokens were transferred to Binance in over 15,000 transactions.
This marks the largest whale-to-exchange activity since January 8, raising concerns about a potential sell-off.
XRP Futures and Market Outlook
XRP futures saw a 42% crash in open interest (OI), with total OI dropping from $6.35 billion on February 1 to $3.55 billion—its lowest level since November 2024. The funding rate has also been reset, meaning many traders have exited their positions.
From a technical analysis perspective, XRP remains in a descending channel, with resistance from the 50-day and 100-day EMAs.
The $2.20–$2.33 range is a key level where buyers might step in. If the price fails to hold, another retest of $2 could happen later this month.
For now, traders are watching closely to see if XRP can break past resistance and move towards $3 again.
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