XRP’s ’Air Pocket’ Plunge: A Technical Correction or a Deeper Crisis?
In early February 2026, XRP experienced a severe and disproportionate selloff, sharply underperforming the broader cryptocurrency market. Prominent analyst Scott Melker, known as the 'Wolf of All Streets,' characterized this sharp decline as the asset entering an 'air pocket'—a technical scenario where liquidity suddenly evaporates, causing prices to drop rapidly without immediate support. This aggressive selling pressure coincided with a noticeable fading of momentum from Ripple's recent developments and legal milestones, which had previously provided bullish catalysts for the token. The selloff intensified beyond the general market downturn, raising concerns among investors about XRP's near-term trajectory. Market observers are closely monitoring whether this represents a healthy technical correction within a longer-term bullish structure or the beginning of a more sustained downtrend. The event highlights the asset's continued sensitivity to market sentiment and specific ecosystem news, separating its price action from the movements of major tokens like bitcoin and Ethereum. For professional practitioners with a bullish outlook on digital assets, such volatility presents both a warning and a potential opportunity. The key question is whether the 'air pocket' has sufficiently reset overleveraged positions and washed out weak hands, potentially creating a stronger foundation for the next upward move, or if fundamental concerns regarding adoption and regulatory clarity are reasserting themselves as primary price drivers. The coming weeks will be critical in determining if this is a temporary liquidity shock or a sign of deeper structural issues facing XRP in the evolving 2026 financial landscape.
XRP Enters 'Air Pocket' as Selloff Intensifies Beyond Broader Market Decline
Scott Melker, the cryptocurrency analyst known as 'Wolf of All Streets,' identifies XRP's disproportionate downturn as the asset enters what he describes as an 'air pocket'—a technical term for sudden liquidity evaporation. The commentary follows aggressive selling pressure across digital assets, with XRP underperforming most major tokens.
Market observers note the selloff coincides with fading momentum from Ripple's partial legal victory against the SEC last year. While Bitcoin and ethereum show relative resilience, XRP's 30-day correlation with altcoins has weakened significantly—suggesting idiosyncratic risks are driving underperformance.
XRP Rebounds 18% After Labor Data Sparks Crypto Sell-Off
XRP plunged to $1.12 on February 5—its lowest since October’s flash crash—before recovering to $1.32 amid broader market turbulence. Weak U.S. labor data catalyzed the drop: jobless claims ROSE to 231,000 while December openings fell to 6.524 million, signaling economic fragility.
Amazon’s $200 billion AI spending announcement further spooked investors, compounding crypto’s downturn. The Senate’s delay of the Market Structure Bill to 2026 added regulatory uncertainty. Technicals remain bearish—XRP trades below both 50-day and 200-day moving averages.
Ripple CEO Invokes Buffett Wisdom Amid XRP's 70% Plunge
XRP led crypto losses with a 20% single-day drop, erasing 70% of its all-time high value. Ripple CEO Brad Garlinghouse invoked Warren Buffett's 'be fearful when others are greedy' maxim as panic spread.
The broader market rout saw double-digit declines across major exchanges including Binance and Coinbase. Analysts attribute the sell-off to fading risk appetite and institutional profit-taking.
Garlinghouse's remarks echo traditional finance playbooks during downturns. The timing underscores crypto's growing convergence with mainstream investment philosophies.
Ripple Shuffles 534M XRP Amid Market Downturn
Ripple executed a strategic transfer of 534 million XRP across four wallets as the token's price plunged to a 15-month low. The blockchain payment firm consolidated 300 million XRP into a single address before redistributing 117 million tokens to secondary wallets—a MOVE analysts interpret as either risk management or preparation for institutional liquidity provisions.
The transfers coincide with a broader market retreat that has particularly battered altcoins. XRP's 15% weekly decline underperforms even Bitcoin's 8% drop, reflecting waning trader confidence in regulatory-clarity narratives that previously buoyed the asset.
Messari Q4 2025 Report Highlights XRP Ledger's RLUSD Growth Amid Rising Adoption
Messari's latest quarterly analysis reveals a surge in RLUSD stablecoin activity on the XRP Ledger, with market capitalization jumping 164.2% during Q4 2025. The crypto intelligence firm's "State of XRP Ledger" report underscores accelerating ecosystem development as institutional interest grows.
XRP's underlying blockchain demonstrates increasing utility beyond payments, with decentralized finance applications driving stablecoin adoption. The 164% RLUSD expansion suggests growing confidence in XRPL's capacity to support complex financial instruments.
XRP Tests Key $1 Support Amid Broad Crypto Liquidation Wave
XRP led altcoin declines with a 9.77% drop to $1.30 as Leveraged long positions unwound across digital asset markets. The selloff mirrors Bitcoin's retreat below $60,000, which erased $1.85 billion in bullish bets industry-wide.
Technical support at $1.50 failed to hold during the session, triggering accelerated selling that briefly pushed XRP to October 2025 lows NEAR $1.13. Trading volume surged past $10 billion as the breakdown accelerated—a capitulation signal that historically precedes short-term bottoms.
No project-specific catalysts drove the move. The token remains hostage to macro crypto flows, with traders awaiting either stabilization in Bitcoin or signs of exhausted selling pressure before rebuilding positions.
