XRP at a Crossroads: Navigating the Bear Market and Future Prospects

As of early February 2026, XRP finds itself in a challenging position, having recently slumped to a price of $1.50. This level marks its lowest valuation since November 2024 and represents a significant 57% decline from its all-time high, firmly placing the asset within bear market territory. The price drop is not occurring in isolation; it is accompanied by concerning declines in key network metrics that suggest a broader cooling of ecosystem activity and investor sentiment. The underlying XRP Ledger's decentralized finance (DeFi) ecosystem is showing clear signs of strain. A critical indicator, the Total Value Locked (TVL), has plunged by approximately 20% over the past month to a current figure of around $55 million. This contraction in locked capital signals a potential reduction in user engagement and developer confidence within the XRP-based DeFi landscape. Furthermore, daily trading volume on decentralized exchanges (DEXes) built on the ledger remains anemic, reported at just $145,820. This figure presents a stark contrast to the vibrant activity seen on networks like ethereum and underscores a current lack of liquidity and trading fervor for XRP-based assets. This confluence of a sinking price and declining on-chain fundamentals presents a critical juncture for XRP. For bullish practitioners, the current environment may be framed as a necessary market correction or a consolidation phase following previous exuberance. The focus for long-term believers likely shifts to core utility, ongoing legal clarity, and adoption by financial institutions for cross-border settlements—XRP's foundational value proposition. However, the immediate technical and on-chain data paints a picture of significant headwinds. The path forward for XRP's price will likely depend on its ability to reverse these negative network trends, reignite developer activity, and demonstrate renewed utility that translates into tangible, growing demand beyond speculative trading. The coming months will be crucial in determining whether the current $1.50 level represents a bottoming pattern or a step in a longer corrective phase.

XRP Price Drops to $1.50 Amid Declining Network Metrics

XRP has slumped to $1.50, marking its lowest level since November 2024 and a 57% decline from its all-time high. The token now sits firmly in bear market territory, with network activity reflecting the downturn.

The XRP Ledger's decentralized finance ecosystem shows signs of strain, with total value locked plunging 20% to $55 million over the past month. Daily DEX volume remains anemic at just $145,820—a stark contrast to Ethereum's $3.1 million in daily activity.

Token economics provide little relief. The XRP burn mechanism has stagnated since August, with a mere 335 tokens destroyed on February 3. This lack of deflationary pressure fails to support prices during the sell-off.

Institutional products mirror the weakness. XRP ETFs bled $404,000 on Monday, compounding last Thursday's $92 million outflow. The lone bright spot comes from the newly launched XRPL Permissioned Domains, which secured 91% validator approval for regulated institutional access.

XRP MACD Records Lowest Histogram in History: What’s Next?

XRP's monthly chart reveals a historic low in its MACD histogram, signaling intensified bearish momentum amid its drop below the $1.6 support level. Such extreme readings often precede potential reversals, drawing scrutiny from traders anticipating a trend shift.

The asset's technical deterioration contrasts with broader market resilience, raising questions about XRP's near-term trajectory. Market participants now weigh whether this signals capitulation or a buying opportunity before a possible rebound.

Dubai Tokenizes $280M in Diamonds on XRP Ledger in Landmark Luxury Asset Move

Dubai is bridging luxury and decentralized finance through a groundbreaking partnership between Billiton Diamond and Ctrl Alt. The initiative has already tokenized over AED 1 billion ($280M) worth of certified diamonds on the XRP Ledger (XRPL), marking one of the largest real-world asset tokenizations to date.

The project transforms traditionally illiquid physical diamonds into transparent, blockchain-based assets. Ctrl Alt handles the tokenization process, while Ripple's custody technology ensures tamper-proof ownership records. Each token is backed by a physically vaulted diamond in the UAE, with full audit trails.

Billiton plans to launch a dedicated trading platform featuring real-time inventory verification—a potential precursor to regulated secondary markets. The XRPL was selected for its subsecond settlement speeds and negligible transaction costs, critical for high-value asset movements.

This MOVE signals growing institutional confidence in blockchain's ability to solve longstanding challenges in luxury asset trading: liquidity constraints, authenticity verification, and cross-border settlement friction.

XRP Ledger Enters New Phase with Native Yield, Says Digital Ascension Group CEO

Jake Claver, CEO of Digital Ascension Group, heralds a transformative era for the XRP Ledger (XRPL), emphasizing that native yield capabilities now provide the missing infrastructure for institutional adoption. 'This changes the game,' Claver stated in a recent X post, noting that XRPL's evolving ecosystem meets long-standing demands from financial institutions.

The development signals a strategic pivot toward large-scale participation, with yield mechanisms serving as the catalyst. Market observers anticipate renewed interest in XRP as the ledger's functionality expands beyond payments into decentralized finance (DeFi) primitives.

Bank of America Invests in XRP ETF Through Volatility Shares

Bank of America has disclosed its investment in an XRP exchange-traded fund (ETF) managed by Volatility Shares, signaling continued institutional interest in cryptocurrency. The bank holds approximately 13,000 shares, valued at $224,640, according to a recent U.S. SEC filing. While modest relative to its overall portfolio, the move underscores a strategic shift toward regulated crypto products.

The investment aligns with Bank of America's broader crypto initiatives, including allowing wealth advisors to recommend crypto ETFs to clients since January 2026. The bank now permits limited crypto exposure of 1–4% in client portfolios, emphasizing regulated instruments like ETFs.

Institutional demand for XRP ETFs is surging, with U.S. spot XRP ETFs nearing $1.20 billion in inflows since launch. This trend reflects growing confidence in XRP's regulatory clarity and its utility in cross-border payments, further cemented by Bank of America's ongoing partnership with Ripple.

XRP Accumulation Surge Defies Bearish Market Sentiment

Short-term holders have aggressively accumulated 1.8 billion XRP tokens within 48 hours, signaling contrarian confidence amid a prolonged downtrend. The token remains 50% below its July 2025 peak of $3.60, yet this buying spree suggests latent bullish conviction.

Market observers note the accumulation coincides with whispers of institutional interest in payment-focused cryptocurrencies. 'When retail hesitates, sharks circle,' remarked a Singapore-based OTC trader, citing unconfirmed block purchases on Binance and Bitget.