After experiencing a sharp correction earlier this month, XRP’s market sentiment remains subdued. However, the analyst Blockchain Backer, who previously warned about this decline, recently stated that extreme selling pressure may have largely eased, and the market could enter a consolidation and potential reversal phase.
Looking back at the trend, XRP reached a high of $2.41 on January 6, 2026, representing an approximately 31% increase since the beginning of the year. But momentum quickly waned, and on February 5, it saw a nearly 20% single-day plunge, retracing almost half of its gains from the high, with the price briefly falling below $1.5.
Blockchain Backer pointed out that he had warned in early January that this upward move was merely a short-term rebound. Technical indicators such as MACD and RSI showed clear divergence signals, suggesting the trend might weaken. As expected, after hitting $2.41, XRP continued to decline and formed a steeper downtrend.
He specifically mentioned that the trading volume on February 5 was unusually high, reaching a nearly one-year peak, far exceeding previous panic sell-offs. Historical experience indicates that when trading volume sharply increases during a decline, it often signals that the “emotional selling” is nearing its end. Similar situations occurred during Bitcoin’s deep correction in 2018, where after the main decline, only minor new lows were made before entering a recovery phase.
Therefore, Blockchain Backer believes that although short-term volatility may still occur, the major decline has likely already taken place. The next phase is more about digesting selling pressure and re-accumulation. He emphasized that the time needed for a reversal is hard to estimate—it could be weeks or even longer—but the market structure is gradually changing.
At the same time, he pointed out that the XRP to Bitcoin ratio remains within a range, indicating that capital has not fully exited the asset. For investors, this stage tests patience and risk management. If on-chain and macroeconomic conditions improve gradually, XRP may have the opportunity to reshape its trend in the upcoming cycle.
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