Crypto Sell-Off Alert: XRP Dives 10% as Bitcoin Faces ‘Banana Peel’ Drop to $42K

Introduction to the Latest Crypto Storm

The crypto market is shaking again. in just 24 hours, hitting levels not seen since late last year. This sharp drop puts XRP below $1.30, leading the losses among top coins. Bitcoin, Ethereum, Solana, Dogecoin, and Cardano all fell too. It’s a broad sell-off that has traders on edge.

What Triggered the Massive Sell-Off?

Market fear is back. High volatility hit the entire crypto space on Friday. Investors pulled back fast, selling off holdings amid uncertainty. Bitcoin dropped to around $60,074. Ethereum slid to $1,748. XRP took the hardest hit, falling to the $1.13 support line. This wiped out gains XRP made since November 2024.

Why now? Global economic worries, rising interest rates, and profit-taking after recent highs played a role. The market feels like it’s in correction mode, with no clear bottom yet.

Peter Brandt’s Chilling Bitcoin Prediction

Veteran trader Peter Brandt sounded the alarm. He calls this a “banana peel” drop for Bitcoin – a sudden slip that surprises everyone. Brandt sees Bitcoin heading to $42,000 soon. He thinks that’s where strong support will kick in and stop the bleeding.

If Bitcoin hits that level, it could pull altcoins like XRP even lower. Traders watch BTC closely because it often sets the tone for the market. Brandt’s view adds to the panic, but his track record makes it worth noting.

How Other Major Coins Fared

• Bitcoin (BTC): Down to $60,074, testing key supports.
• Ethereum (ETH): Fell to $1,748, hit by weak demand.
• Solana (SOL): Joined the red zone amid high volatility.
• Dogecoin (DOGE): Meme coins dropped hard as risk appetite faded.
• Cardano (ADA): Saw steady losses in the sell-off wave.

XRP stood out with its 10% plunge, but its drop shows how connected all coins are right now.

ETF Flows: A Mixed Bag for Crypto

Exchange-traded funds (ETFs) tell a story of caution. On February 5, U.S. Bitcoin ETFs saw huge outflows of $434 million. BlackRock’s IBIT led with $175 million gone. Ethereum ETFs lost $80.79 million too.

But not all bad news. Solana spot ETFs gained $2.82 million. XRP ETFs did better with $4.83 million in inflows. This shows some investors still bet on XRP and Solana, even in tough times. Positive ETF flows for XRP could signal building confidence.

XRP Technical Breakdown: Oversold or More Pain?

Let’s look at XRP charts. The next downside target is $1.20. If bears keep pushing, $1.10 is possible. Good news? The Relative Strength Index (RSI) is at 33 – close to oversold territory. This often means a bounce is near.

For bulls, breaking above $1.40 changes everything. It could spark recovery and flip sentiment positive. XRP has shown stability versus peers, hinting at quicker rebound potential.

Why XRP Might Recover Faster Than Others

XRP has unique strengths. Ongoing Ripple developments, real-world use cases in payments, and ETF interest help. Unlike pure spec coins, XRP ties to cross-border tech. In past corrections, it bounced back strong when Bitcoin stabilized.

Watch these factors:

1. Bitcoin’s move toward $42K support.
2. Overall market volume – low volume drops often reverse fast.
3. News on regulations or Ripple wins.
4. ETF inflows continuing for XRP.

If oversold conditions trigger buying, XRP could lead the altcoin rally.

Risks and What Investors Should Do

Bearish risks remain. If Bitcoin breaks lower, XRP follows. Macro events like Fed decisions could worsen the sell-off. New traders might panic sell at bottoms – a classic mistake.

Smart moves:

• Set stop-losses near $1.10.
• Buy dips if RSI hits 30 or below.
• Diversify beyond just crypto.
• Stay updated on Brandt’s calls and ETF data.

Long-term holders see this as a buying chance. Short-term traders, buckle up.

Looking Ahead: End of the Sell-Off?

The crypto market has wild swings, but history shows recoveries follow corrections. XRP’s relative strength and ETF support point to upside. If Bitcoin holds $42K as Brandt predicts, the storm passes soon.

Keep eyes on key levels. A rebound above $1.40 for XRP means bulls back in control. For now, the story dominates, but opportunity hides in the chaos.

Stay tuned for updates as this unfolds. What do you think – buy the dip or wait?

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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.