On February 4, 2026, XRP dumped sharply from around $1.5 to $1.15. This drop followed broader market losses, with major cryptocurrencies such as Bitcoin, Ethereum, and BNB also registering declines.
Despite the sudden move, Versan Aljarrah, founder of Black Swan Capitalist, emphasized that this type of correction is a healthy market response. He noted that such events flush leverage and remove weaker positions, allowing stronger participants to enter at favorable levels.
Aljarrah described the decline as a natural reset within market dynamics. He stated, “This is what a healthy correction looks like. Leverage gets flushed, weak hands exit, and institutions step in to accumulate at better levels.” According to him, the shakeout allows professional investors to acquire XRP at lower prices, improving overall market stability.
The recent drop in XRP appears to have prompted institutional actors to evaluate accumulation opportunities. Aljarrah highlighted that these market participants often view temporary price declines as a chance to secure assets at reduced costs. The correction, while significant in magnitude, has created favorable conditions for institutionally structured buying.
The presence of professional buyers can help XRP maintain price stability. By entering during periods of market weakness, these participants reduce volatility and create a foundation for future growth. Aljarrah’s perspective suggests that such activity is a deliberate step in market preparation, not a signal of prolonged downturns.
The decline in XRP coincided with a broader market correction, in which leading digital assets experienced similar losses. Bitcoin fell roughly 7.3%, Ethereum 7.5%, and BNB 8.65%.
XRP’s 14% drop was the most pronounced movement among major tokens. Analysts view this type of contraction as part of normal market cycles, where temporary setbacks allow for rebalancing of positions and the removal of overextended trades.
Aljarrah emphasized that these conditions often lead to stronger market foundations. By clearing excessive leverage, XRP can attract more disciplined investors and create an environment where growth is supported by sustainable buying rather than speculative momentum.
The shakeout also ensures that participants holding positions are committed, reducing the likelihood of extreme volatility in the immediate term. Following the correction, XRP is positioned for potential stabilization and recovery.
Aljarrah sees the decline as a strategic opportunity for institutions to enter the market at advantageous levels. He also believes this is a temporary reset, and expects a sharp upward move to follow.
