Ripple and Sui Lead Altcoin Carnage as Liquidations Top $1.3B: Capitulation or Setup?

If you want to know what a real crypto bloodbath looks like, you do not need to check Bitcoin. You need to look at the altcoin trenches, where Ripple (XRP) and Sui (SUI) just staged a synchronized nosedive that would make even the most jaded trader wince. As of February 5, 2026, with $BTC limping below $70,000 and the majors sucking all the oxygen out of the room, the altcoin complex is in full-blown panic mode. Liquidations have topped $1.3 billion in 24 hours, according to CryptoPotato, and the usual suspects, over-leveraged longs, are learning, once again, that gravity is undefeated.

The numbers are not pretty. Ripple (XRP) plunged 13% in a single session, slicing through the psychological $1.50 floor like it was butter. Sui (SUI) joined the misery parade, dropping 9.5% since Wednesday, according to CoinDesk. The carnage is not isolated: BNB, Solana, and a host of smaller names have all been dragged into the undertow. The proximate cause? A toxic cocktail of forced liquidations, margin calls, and a sudden evaporation of dip-buying conviction. When the algos smell blood, they do not ask questions, they just hit the sell button.

The context is as ugly as the price action. Bitcoin has lost 26% over the past 30 days, and the narrative that "alts outperform in a bull market" has been torched. Instead, we are seeing the classic late-cycle unwind: leverage unwinds, whales dump, and retail gets left holding the bag. The catalyst for this latest flush was not a single event, but a cascade, margin longs at Bitfinex hit a two-year high just as $BTC lost its grip on $70,000, setting off a domino effect across the board. Throw in some regulatory jitters and a market that has been living on borrowed time, and you have the recipe for a proper washout.

What is especially notable is the speed. XRP's drop was not a slow bleed, it was a trapdoor. As soon as the $1.50 support gave way, the order book turned into a black hole. Sui, which had been holding up reasonably well, saw open interest spike even as price collapsed, a classic sign of trapped longs getting squeezed. The liquidations are not just numbers on a screen, they are real capital getting vaporized. This is not the kind of move you fade blindly, unless you enjoy catching falling knives.

But here is the thing: capitulation is both terrifying and necessary. Crypto markets have a habit of overshooting in both directions, and the current volatility is a feature, not a bug. When you see $1.3 billion in liquidations, that is not just pain, it is potential fuel for the next bounce. The question is whether the forced selling is done, or if there is another leg lower as the late longs get flushed out for good.

Strykr Watch

Technically, XRP is in no-man's land. The loss of $1.50 opens the door to the next major support at $1.15, which is where the "red signal tsunami" is flashing, according to FXEmpire. If that level fails, you are looking at a round trip to the pre-ETF lows. Sui is showing similar stress, with the next support zone around $1.10. RSI readings are deeply oversold, but do not confuse oversold with safe. The liquidation clusters are thick between current levels and the next supports, so expect more volatility as the market tries to find a floor.

Volume is spiking, but not in the way you want, this is panic-driven, not accumulation-driven. Open interest on Sui is still elevated, which means we are not out of the woods yet. Watch for a flush below $1.15 on XRP and $1.10 on Sui as potential capitulation points. If those levels hold, you might see a dead cat bounce. If not, buckle up for another round of forced selling.

The risk here is that the altcoin complex is not trading on fundamentals, it is trading on liquidity and leverage. The absence of real buyers means that technical levels matter more than ever. If you are trying to knife-catch, size down and keep stops tight. This is not the time to be a hero.

On the opportunity side, the best trades come after the forced sellers are done. If XRP stabilizes above $1.15 and Sui finds footing at $1.10, you could see a sharp mean reversion rally. But do not expect a V-shaped recovery, this is a market that needs to rebuild trust, and that takes time. Look for confirmation from volume and open interest before stepping in. If you must play, think short-dated, high-gamma options or tight stop-loss spot entries.

Strykr Take

This is not the end of crypto, just the end of another over-leveraged chapter. The altcoin flush is ugly, but necessary. Capitulation sets the stage for opportunity, but only for those with discipline and patience. Do not try to be the hero who calls the bottom. Let the forced sellers finish their business, then pick your spots. The pain is real, but so is the potential for a snapback once the dust settles.

Date Published: 2026-02-05 15:45 UTC