Crypto prices extended losses over the weekend, and XRP followed the broader market decline during a period of heightened volatility. At the same time, renewed online rumors briefly shifted attention toward Ripple and its leadership. XRP traded below the $1.60 level as selling pressure persisted across major digital assets. The price movement occurred because traders observed both market stress and online unrelated narratives.
The renewed focus combined market weakness with reputational noise, creating a complex backdrop for XRP’s short-term performance. Could tightening supply alter XRP’s next move as prices remain under pressure?
During the January 31 to February 1 weekend, past rumors resurfaced online linking Ripple or early associates to the Jeffrey Epstein network. The claims appeared during a period of sharp crypto market stress.
Ripple’s former chief technology officer, David Schwartz, responded publicly and rejected these allegations. He described them as recycled misinformation tied to tribal behaviour during volatile market conditions. Schwartz stated that the claims lacked factual support and did not reflect Ripple’s history, noting how the timing aligned with heightened tension across the crypto market rather than new evidence.
According to CCN findings, Epstein discussed XRP and XLM in private emails with certain individuals. Those discussions later became part of renewed online speculation. Schwartz clarified that the emails did not show support for either asset. Instead, Epstein viewed XRP and XLM as threats to the existing financial ecosystem.
Schwartz explained that Epstein considered supporters of XRP or XLM as opponents. He said the context showed hostility toward the projects rather than endorsement.
While rumors circulated, on-chain data pointed to a separate development within the XRP network. Glassnode data showed a sharp rise in XRP classified as “hodled” or lost coins. This metric reflects tokens held in long-term inactive wallets. The increase suggests that more XRP moved into wallets with limited spending activity.
At the same time, XRP’s price continued to trend lower. The divergence between rising inactive supply and falling price drew attention from market observers. Historically, similar patterns have appeared during periods of distribution exhaustion. In such phases, selling pressure fades as fewer liquid tokens remain available.
The data indicates that the liquid XRP supply may be shrinking despite price weakness. Fewer coins appear ready for immediate trading on the open market.
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XRP’s price slipped below $1.60 as market conditions remained unstable. The decline occurred even as long-term holdings increased across the network. Past cycles show that rising illiquid supply does not trigger instant price rebounds. Instead, XRP has often entered consolidation phases following similar on-chain shifts.
In previous instances, price consolidation lasted several weeks before any directional move emerged. The current setup mirrors those earlier periods. For now, XRP trades lower while long-term holders retain coins. The market continues to balance falling prices against signs of reduced liquid supply.
XRP fell below $1.60 amid broad crypto market weakness and renewed Ripple rumors dismissed by David Schwartz. At the same time, on-chain data showed rising long-term holdings and shrinking liquid supply. This setup points to reduced selling pressure, though past cycles show consolidation can persist before any price response.