As of February 4, 2026, the signal for XRP perpetual positions is bearish to neutral-cautious, as the asset faces significant downward pressure and a persistent month-long downtrend.
Perpetual Futures Market Data.
Funding Rate: The weighted funding rate has turned negative, reaching its lowest level in weeks. This indicates that short sellers are paying long holders to keep their positions open, a sign of dominant bearish expectations.
Open Interest (OI): OI has dropped to $2.93 billion, a massive 73% decline from its July 2025 peak. This represents significant de-leveraging as traders exit positions following recent liquidation cascades.
Liquidations: Over $126 million in long positions were wiped out between January 31 and February 1, 2026, as the price broke critical support levels.
Key Technical Levels
Traders are closely monitoring the following zones for the remainder of early February 2026:
Level Type Price (USD) Significance Immediate Resistance $1.70 - $1.71 A 2-day close above this is required to confirm a potential bullish divergence.
Major Resistance $1.97 - $2.00 Reclaiming this level on a 2-day closing basis is essential for shifting control back to buyers.
Critical Support $1.54 - $1.60 Current floor; a breakdown here exposes the $1.46 zone.
Deep Support $1.24 - $1.25 The next major demand zone if the $1.46 support fails.
Trading Insights Potential Relief Rally: The Money Flow Index (MFI) and RSI are hitting oversold territories, which could spark a short-term relief bounce toward $1.79 if the $1.54 support holds.
Whale Activity: Interestingly, wallets holding over 1 billion XRP have been accumulating during this pullback, which may reduce the probability of a total collapse but has not yet provided a price floor.
Institutional Pressure: Spot XRP ETFs recorded a record $92.9 million outflow on January 29, 2026, highlighting institutional caution and a "risk-off" sentiment in the current macro environment.
what's your take o XRP in such situation: