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Will XRP Crumble Below $1 in February? The Answers Worried Us

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Will XRP Crumble Below $1 in February? The Answers Worried Us


XRP is already down by 30% from its peak this month.

The landscape around most cryptocurrencies has been quite unfavorable for the past few weeks, and Ripple’s cross-border token was not spared.

After a strong start to the new year, in which it rocketed by 30% in days to a multi-week high of just over $2.40 on January 6, the asset was rejected and driven south hard. The latest correction from the last trading week of January brought it south to a 14-month low of $1.50 – a level last seen before the price rally after the US elections in 2024.

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The question we just asked some of the most popular AI solutions is whether XRP is heading for a new low at or below $1.00 soon.

XRP to Hold $1?

Gemini was somewhat conservative in its prediction for XRP in February. It noted that after such a prolonged period of enhanced volatility that included several 30% price moves in either direction, the asset is most likely to enter a consolidation phase. More specifically, it named the upcoming period “consolidation followed by a decision point.”

In the more favorable scenario for the bulls, this sideways trading could occur at around $1.80-$2.00 if XRP manages to rebound and hold above the $1.65-$1.70 support during the first week of the new month.

However, if it fails and falls, the bearish continuation is more likely to transpire at around $1.25-$1.45. Interestingly, Grok also provided an identical price target for the first few weeks of February, suggesting that if the $1.70 floor breaks decisively, there is “very little volume support until the $1.45 region.” It added that this is the “max pain” scenario for late buyers, and essentially dismissed the sub-$1.00 possibility.

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$1 or Less in Feb?

ChatGPT noted that XRP will likely defend the $1.00 level in February. It admitted that the ongoing selling pressure is intense, perhaps due to the escalating global tension, which is also evident from the latest ETF outflows, but believes the $1.00 target is still far from XRP to be causing actual concern. However, it noted that such a possibility is still in the cards for XRP by the end of Q1 and the beginning of Q2.

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Perplexity was slightly more bearish on the token’s upcoming price performance. It explained that if the geopolitical landscape worsens, which could take place in days if the US indeed attacks Iran, XRP, being a riskier asset, might find itself in another nosedive situation, this time toward $1.00.

However, it also dismissed the possibility of a price drop below that level in February, as long as there’s no black swan event.

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Crypto World

NYSE Exchanges Remove Cap Limiting Crypto Options

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NYSE Exchanges Remove Cap Limiting Crypto Options

Two New York Stock Exchange-affiliated exchanges have removed the 25,000 contract position limit on options tied to 11 crypto exchange-traded funds.

NYSE Arca and NYSE American each filed three rule changes in the Federal Register on March 10 to remove contract position limits and price discovery restrictions for options linked to Bitcoin (BTC) and Ether (ETH) ETFs listed on their exchanges.

These were acknowledged by the Securities and Exchange Commission on Sunday, with the SEC waiving the standard 30-day waiting period for both sets of proposed rule changes, meaning they are now in effect.

11 crypto ETFs are impacted by the options rules changes on NYSE Arca and NYSE American. Source: SEC

The limits were imposed when crypto ETF options first started trading in November 2024. Limits of this nature are typically imposed to prevent market manipulation and volatility. T

The removal of those limits now puts them closer to how other commodity ETF options are treated, and gives institutions greater trading flexibility while also potentially boosting liquidity and making it easier to enter and exit positions. 

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It also allows the crypto options to be traded as FLEX options, which include customizable terms such as non-standard strike prices, expiration dates and exercise styles.

Related: Scaramucci says BTC’s 4-year cycle still in play, forecasts rise in Q4 

A total of 11 crypto ETF options are affected by the rule changes, including BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB).

Bitcoin and Ether ETFs issued by Bitwise and Grayscale are also affected.

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