XRP Bulls May Be Early, Analyst Warns

As traders search for signs that the latest cryptocurrency selloff is nearing exhaustion, caution remains the dominant message from analysts watching XRP closely, and one of them has argued neither XRP nor Bitcoin (BTC) has confirmed a durable bottom.

Specifically, according to the analysis shared by prominent crypto market expert CoinsKid in a video on February 1, the premature optimism could be costly. Though short-term bounces have appeared across the market, he emphasized that macro indicators and liquidity conditions still point to unresolved downside risk.

XRP Structure Remains Broken

From a technical standpoint, XRP has lost a major support zone between roughly $1.86 and $2.00, a level that now acts as resistance rather than a foundation for recovery. Price is trading below the Balance of Market Structure (BMS), a signal that control has shifted firmly away from buyers.

Indeed, the price of XRP currently stands at $1.61, indicating a 3.3% drop in the last 24 hours, a more significant 14.4% dip across the past seven days, and an accumulated decline of 20.4% over the month, according to the most recent charts.

CoinsKid highlighted that XRP’s recent price action resembles a descending triangle formation, a structure that historically resolves lower before any sustained accumulation phase begins. Though capitulation behavior is visible on lower timeframes, the broader trend remains bearish.

Adding to the pressure, XRP’s liquidity metrics are flatlining. Without fresh capital entering the market, rebounds tend to fade quickly. According to CoinsKid, liquidity injections, not sentiment shifts, are the missing ingredient for a meaningful trend reversal.

Bitcoin Still Sets the Tone

Despite the XRP-specific weakness, Bitcoin remains the primary macro driver. CoinsKid outlined a likely ABC corrective structure unfolding in Bitcoin, with a potential downside target near the 1.618 Fibonacci extension around $54,000.

Crucially, a proprietary Bitcoin Accumulation Band, which is used to identify bear-market bottoms, has not yet flashed its defining green buy signal. Previous market cycles only stabilized once that signal appeared, suggesting risk remains elevated.

Broader sentiment indicators reinforce that caution. The Fear and Greed Index has not reached levels typically associated with durable bottoms, while volatility remains elevated and profit-pressure metrics continue to fade rather than expand.

What Could Change the Outlook

CoinsKid pointed to liquidity rotation as the key catalyst to watch. Historically, shifts out of parabolic moves in gold and silver have coincided with renewed inflows into XRP. Until such a rotation materializes, downside volatility remains a realistic scenario.

For now, the message is restraint. Structure, liquidity, and macro confirmation still matter more than hope, and none have aligned yet.

XRP Price Today

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