 Traders ‘aggressively’ bought XRP after market crash sent prices under $2 — Analyst 
2025-02-07
Category: None

XRP (XRP) price has maintained a position above $2 this week, thanks to traders bidding on the altcoin during the recent correction. Investors on the Korean exchange Upbit, and Bybit took advantage of the crash, accumulating significantly as indicated by the rising CVD value. 
Traders swapped ETH for BTC and XRP as markets crashed
XRP was one of the crypto assets that dropped significantly during the recent correction, flashing a low of $1.78 on Feb. 3 from a high of $3.08 on Feb. 1. However, the altcoin managed to close firmly above the psychological level of $2. An anonymous market analyst, ltrd, pointed out that Korean traders were potentially responsible for XRP’s swift recovery. 
In an X post, the analyst explained that Korean investors were “aggressively” buying XRP and BTC while dumping their ETH bag during the sell-off. The analyst added, 

Under closer observation, it can also be implied that a majority of buy bids were positioned under $2 since the cumulative volume delta (CVD, the net sum of buy and sell volume) registered a sharp increase during 2:00-3:00 UTC on Feb. 3. XRP dropped down $1.78 before closing above $2.15 during the same hour. 
While Asian spot buys might have kept XRP above $2 at the moment, data from CryptoQuant hinted that XRP whales might be selling a part of their bags. 
More than 15,008 transactions occurred over the past day, with whales moving more than 180 million XRP tokens to Binance. This is the largest number of transactions taking place from whales to exchanges since Jan. 8. 
Related: XRP price analysts bullish on $5 next, long-term target of $18
XRP open interest drops 44% in February
While spot traders took advantage of the opportunity, a 42% flash crash wiped out a significant portion of XRP futures open interest (OI). As illustrated in the chart, XRP OI tanked by 44% in February, dropping down to $3.55 billion from a high of $6.35 billion on Feb. 1. 
The aggregated XRP open interest across all exchanges dropped down to November 2024 lows, indicating a complete flush of leverage positions over the past three months. The funding rate has also been reset, implying that most traders are currently sidelined. 
From a technical perspective, XRP continued to thread lower within a descending channel pattern, with both 50-day and 100-day EMA acting as overhead resistance. The altcoin is set to retest the daily order block, which could potentially be buyers’ first area of interest, as there is long-term demand between $2.20 and $2.33. 
Price reaction will be key in this region, as it may determine either a reversal or bearish continuation for the altcoin, possibly opening up another $2 retest over the course of February. 
Related: 71% of institutional traders have ‘no plans’ for crypto: JPMorgan survey
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.