

XRP dropped sharply on Thursday, February 5, after leveraged long positions unwound during a broad crypto market sell-off. Meanwhile, Ripple reported new regulatory approvals in Europe and the UK. The session showed how leverage can outweigh corporate milestones in the short term.
XRP price reversed more than 17% gains to around $1.5 after a weekly drop of more than 30%.
The wider market also slid. Bitcoin dropped to about $63,500, its biggest one-day fall since late 2022. Ether fell below $2,000. Analysts estimated the crypto market has lost $2 trillion in value since October.
Leverage amplified the XRP move. CoinGlass data showed about $46 million in XRP liquidations over 24 hours. Long positions made up approximately $43 million of that total. Prices eased lower for most of the day. A late drop then triggered stop-loss orders, and exchanges closed leveraged trades.
Liquidations spread beyond XRP. CoinGlass data indicate that total crypto liquidations on Thursday reached about $1.42 billion. Long positions made up most of that figure. This backdrop helps explain why major tokens dropped and why the price reacted more to positioning.
Chart levels also shaped near-term attention as well. The drop moved XRP below the $1.44 area that many traders had treated as support. Traders watch that level as potential resistance and monitor $1.00 closely despite crypto market volatility
SoSoValue data indicated this week’s net inflows near $24 million. The product attracted cumulative inflows of over $1.2 billion since its launch in November 2025. Steady inflows do not prevent sharp sell-offs, but they can describe who buys. ETF flows often reflect longer-horizon positioning.
Moreover, derivative liquidations reflect short-term leverage. In this episode, the liquidation wave drove much of the day’s move. Meanwhile, the ETF channel still showed net buying.
Ripple said it received full approval of an Electronic Money Institution licence from Luxembourg’s Commission de Surveillance du Secteur Financier on February 2. The firm said the authorization will help it scale Ripple Payments across the European Union. Ripple managing director Cassie Craddock called the license a “transformative milestone,” the company said.
Ripple also announced UK permissions on January 9. The Financial Conduct Authority granted an EMI licence and a cryptoasset registration, Ripple said. Monica Long said blockchain and digital assets now serve as “critical infrastructure” for the global economy. Ripple said it now holds more than 75 regulatory licences worldwide.
Network activity metrics continue to track the XRP Ledger independently of token price. XRPSCAN’s public API defines daily “payments_count” and other ledger metrics. Analysts use these series to monitor throughput and user activity across market cycles. This data can add context when investors compare utility signals with price action.
Also Read: XRP Make-or-Break Moment: Is This the Start of a Big Move?
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.