The Crypto Basic

The golden pocket support has cushioned recent XRP bearish price action and could provide the momentum needed to spark a recovery.

XRP fell nicely within this golden pocket, widely known as the 0.618 Fibonacci level. Here, it hit the 1.618 Fibonacci level, fell briefly below the 0.65 Fibonacci level, and then reclaimed the former support area.

This textbook move could mark the end of a corrective wave and cause XRP to post a relief pump from current levels. If this move does happen, the market has identified possible price levels to watch.

Key Points

• The golden pocket support has cushioned recent XRP bearish price action and could provide the momentum needed to trigger a recovery.
• XRP held up nicely around the 1.618 golden pocket Fibonacci level after a brief dump to the 0.65 Fibonacci level below.
• When the relief wave 4 rally starts, she identified the 0.382 Fibonacci level at $1.78 as the first resistance to watch.
• Reclaiming and holding the $2.03 psychological level may invalidate the corrective fifth wave that would lead to the imminent relief pump.

XRP Wave Pattern

Experienced market trader CasiTrades explained in her February 2 market analysis that XRP gave the market reset she was expecting. Her commentary highlighted that the coin has been following an Elliott Wave pattern, marked by periods of price declines and recoveries.

With several waves on her accompanying chart, her focus is on the blue-colored sub-wave pattern. Notably, this structure began to form from the early January high of $2.41 on the 4-hour price chart.

The first wave was corrective, forcing a pullback to $2.03 on January 12. Following this was wave 2, which saw XRP rebound slightly to $2.19 two days later. Subsequently, the third wave started, again bearing bearish tidings for the coin. It was during this wave that XRP dropped to the 0.65 Fibonacci around $1.53 before a recovery to the golden pocket Fibonacci level.

Support Around Golden Pocket

Meanwhile, XRP has recovered to near the 1.618 golden support Fibonacci level at around $1.63 after a pullback to $1.52 on January 31. This has prompted CasiTrades to predict the end of corrective wave 3 and the start of a relief pump, aligning with wave 4.

When the relief rally starts, she identified the 0.382 Fibonacci level at $1.78 as the first resistance to watch. Notably, this level aligns with a former support level that XRP broke through during corrective wave 3. Her chart shows that wave 4 would see the coin reach the 0.65 Fibonacci level at $1.95.

CasiTrades further highlighted that the second wave was shallow, which, in a typical Elliott wave pattern, suggests a longer wave 4. As such, the imminent relief pump could extend towards the 0.5 Fibonacci retracement at $2.03.

No Further Wave 5 XRP Pullback? Caveat to Note

According to the analyst, reclaiming and holding the $2.03 psychological level may invalidate the corrective fifth wave that would ensue the imminent relief pump. This means it would not have to continue its downward move towards $1.55 or lower, which typically follows wave 4.

However, she stressed that nothing is confirmed at the moment. She highlighted a bullish divergence between price and RSI during this downtrend, but noted that XRP would have to push past resistance levels to validate momentum.

Moreover, there is still no guarantee that even the wave 4 relief pump will occur. XRP could still fall to lower levels if price weakness persists.

An XRP commentator says Ripple has strong grounds to pursue legal action on behalf of XRP holders following recent disclosures linked to the Jeffrey Epstein files.

As the Epstein files continue to spark controversy across multiple sectors, some commentators suggest Epstein may have had indirect involvement in events surrounding Ripple’s early regulatory challenges.

The company’s legal battle with the SEC resulted in millions of dollars in losses and slowed its growth in the United States. Now, XRP community figure “Stellar Rippler” argues that Ripple has every right to sue individuals believed to have played a role in these regulatory setbacks.

Key Points

• Amid ongoing revelations from the Epstein files, speculations suggest that Epstein may have had indirect links to Ripple’s early regulatory challenges.

• A May 7, 2018, email shows Epstein discussing Gary Gensler with Lawrence Summers, noting Gensler’s interest in digital currencies.

• Gensler became SEC chair two years later, fueling speculation that earlier discussions may have influenced the SEC’s lawsuit against Ripple.

• An XRP commentator says Ripple has strong legal grounds to act on behalf of XRP holders and sue the parties involved.

Epstein Disclosed Crypto-Related Discussions with Gensler

Among the disclosures is a reference to Blockstream co-founder Austin Hill, who described Ripple and Stellar as threats to competing blockchain ecosystems.

Hill allegedly urged Epstein and former MIT Media Lab director Joichi Ito not to invest in either company. Separately, a May 7, 2018, email from Epstein, marked “Do Not Share or Quote,” shows him asking former U.S. Treasury Secretary Lawrence Summers about Gary Gensler, noting that Gensler wanted to discuss digital currencies.

Meanwhile, Gensler became SEC chair two years later. Since Hill had earlier raised concerns about Ripple and Stellar, speculation has emerged that these discussions may have influenced the eventual SEC lawsuit against Ripple.

Ripple Has Strong Grounds to Sue Involved Parties on Behalf of XRP Holders

According to Stellar Rippler, years of regulatory pressure caused extensive damage to Ripple. He points to millions of dollars in losses, years of stalled progress, frozen partnerships, XRP delistings across U.S.-based exchanges, and sustained reputational harm.

He stressed that retail investors suffered the most, absorbing the downside of legal uncertainty. Furthermore, the analyst argued that the legal overhang discouraged banks, institutions, and global payment networks from partnering with Ripple due to perceived regulatory risk.

He described the situation as a mix of regulatory overreach and politically timed actions that resulted in tangible economic harm to investors, specifically retail XRP holders. As a result, he argued that Ripple would be justified in pursuing legal action against parties allegedly involved in its regulatory troubles.

Clayton, Not Gensler, Initiated XRP Lawsuit

Despite these claims, it is important to note that Gensler did not file the Ripple lawsuit. His predecessor, Jay Clayton, initiated the case in December 2020, while Gensler assumed office in January 2021.

Although Gensler did not bring the lawsuit, the SEC pursued the case aggressively under his leadership. The court later criticized the agency for failing to show faithful allegiance to the law.

Meanwhile, as calls grow for Ripple to seek records or pursue legal action over alleged Epstein-linked influence on crypto policy that may have targeted the company, some analysts remain skeptical. They argue that Ripple is unlikely to take legal action, citing its ongoing and strategic relationship with the U.S. government.

After the sharp XRP price decline, which wiped out most leveraged positions, futures flows have begun recovering, up 749% in 4 hours.

This trend indicates that leverage may now be returning to the market, as the XRP price looks to recover alongside the rest of the crypto market. For context, the latest bearish wave built on a selling spree that began on Jan. 28, with XRP dropping more than 21% from $1.93 to a low of $1.52 by Monday, Feb. 2. 

The sustained downtrend led to increased liquidations, with $69.4 million worth of long positions wiped out on Jan. 30. Investors immediately pulled out of the market, leading to lower liquidations over the past three days.

However, as XRP rebounds from the $1.52 low, now trading back above the $1.6 level, interest may be recovering, as futures flows witness a rapid increase across multiple timeframes, including a 749% rise over the past 4 hours.

Key Points

• Following the downturn that began on Jan. 28, the market wiped out millions worth of long positions, leading to reduced interest in leveraged trading.
• As investors pulled out of the market, liquidations have reduced over the past two days, collapsing by more than 19x.
• XRP has now embarked on a rebound push, recently reclaiming the $1.6 level.
• This has led to renewed interest in leveraged trading among investors, resulting in a 749% spike in futures flows over the past 4 hours.
• While increasing futures flows may bolster the rebound effort, they could also lead to a sharp pullback if the leveraged positions unwind quickly.

XRP’s Increased Liquidations

This comes as interest in the futures market returns, per data from market analytics resource Coinglass. Notably, investors initially pulled out of the market as the price drop from the Jan. 28 high led to increased liquidations across the board.

Specifically, on Jan. 30, long liquidations totaled $69.42 million, representing the largest figure since the Oct. 10 crash. In contrast, only $1.33 million worth of shorts faced liquidations. The next day, Jan. 31, the market saw $57.14 million worth of long liquidations, a yearly high second only to the Jan. 30 figure. 

While the price downturn spilled into February, liquidations lowered due to a decrease in futures trading. Notably, long liquidations stood at $6.09 million on Feb. 1 and $3.64 million on Feb. 2 despite XRP dropping 7.52% to $1.52 during this period. 

XRP Futures Flows Jump 749% in 4 Hours

Now, with XRP recovering back above $1.6, interest in leveraged positions has returned, marked by an increase in futures flows. Specifically, over the past 4 hours, the XRP futures market has witnessed inflows worth $162.22 million, with outflows totaling $151.56 million. This translates to a net inflow of $10.67 million, representing a 749% increase from previous figures.

Moreover, across multiple timeframes from 5 minutes to 12 hours, futures net flows have been consistently positive. Within the past 12 hours, investors have deposited $384.67 million into the XRP futures market, with about $389.74 million withdrawn. This led to a net inflow of $4.94 million. Nonetheless, the latest figure marks a decline of 49.81% from previous ones.

Over the last 8 hours, the net inflow has stood at $4.76 million, a 76% increase. Meanwhile, the past 1 hour has recorded $9.58 million worth of net inflows. While the 5-minute interval has only seen $936,000 in net inflows, the figure represents a 670% increase.

How Could This Impact XRP Price?

The rising futures inflows during XRP’s recovery show that more traders are stepping back into the market with fresh positions. This added activity can help push prices higher in the short term as confidence returns. 

However, because many of these trades use leverage, the market also becomes more sensitive to sudden moves, meaning quick pullbacks can happen if sentiment shifts. Overall, the ongoing trend could support the rebound effort but may come with higher volatility.

The Multi-Purpose Tokens (MPT) standard on the XRP Ledger could help close a global trade finance gap that has left trillions of dollars’ worth of goods sitting idle in storage facilities. 

Notably, most businesses hold real, valuable inventory but struggle to use it as loan collateral because banks rely on outdated documentation systems that lack transparency, real-time verification, and reliable audit trails.

The XRP Ledger MPT standard could help address this issue by embedding legal and asset data directly into on-chain tokens. With this, warehouse receipts can now function as full financial instruments with built-in rules and lifecycle management. 

Key Points

• The global trade finance gap stands between $2.5 trillion and $5 trillion, trapping capital in warehouse-held inventory.
• Traditional receipt systems depend on emailed PDFs that fail to meet modern verification and audit standards.
• The MPT standard on the XRP Ledger could help solve this by embedding legal data such as warrant numbers, expiration dates, and document hashes into on-chain tokens.
• With this, programmable receipts can move through their full lifecycle, from collateral pledge to settlement and closure.
• The model would enable asset-backed lending with real-time transparency instead of paperwork-based trust.

Details of the XRPL MPT Standard 

The XRP Ledger launched the MPT standard on the mainnet on Oct. 1, 2025, through the MPTokensV1 amendment (XLS-33), to improve how real-world assets move on the network. Notably, MPTs combine the efficiency of regular tokens with the flexibility of unique digital assets to allow detailed information to live directly on the ledger.

Each MPT can store legal data, compliance records, asset details, warrant numbers, expiration dates, and cryptographic proof of original documents. 

The system also gives issuers control tools such as freezing, clawbacks, allowlists, and multi-signature approvals through Signer Lists. These features make MPTs suitable for real-world use cases like bonds, inventory tracking, and warehouse receipts.

XRPL MPT Standard Could Solve a $5T Global Trade Issue

Interestingly, in a recent commentary, Max Avery, a Principal at Digital Ascension Group, suggested that the standard could target a major weakness in global finance, which involves a gap between $2.5 trillion and $5 trillion. 

The XRP Ledger's MPT standard solves a $5 trillion problem.

One company already minted real warehouse receipts as tokens on Devnet

Here's why this matters for RWA
1/18🧵

— Max Avery (@realMaxAvery) January 25, 2026

For context, this gap represents goods sitting in warehouses that cannot access funding. The Asian Development Bank and the World Trade Organization have tracked this problem for years, especially in developing economies that rely heavily on trade.

Specifically, many companies hold large volumes of inventory but cannot use it as loan collateral. This is because banks require verified documents, real-time tracking, and clear audit trails before releasing capital. 

However, most warehouse receipts still exist as simple PDF files shared by email, which creates risk and limits transparency. As a result, goods remain financially locked. This is the problem the MPT standard solves.

XRPL Provides an Enabling Environment

According to Avery, the XRPL provides the technical strength necessary for the system to function. Specifically, its low fees and fast transaction speeds are suitable for frequent asset movement without high costs. Moreover, built-in compliance tools and issuer controls make the network suitable for regulated finance.

While the XRPL’s MPT standard could unarguably help solve the $5 trillion global trade issue, investors should always do their due diligence before getting involved in any third-party protocol leveraging XRPL functionalities such as the MPT standard.