XRP’s $1.29 Cliffhanger: Can Bulls Defend Support or Will LiquidChain Steal the Spotlight?

If you’re looking for the poster child of crypto’s ability to turn every technical level into a psychological battlefield, look no further than XRP’s latest dance with the $1.29 support. On the morning of February 6, 2026, XRP’s price action didn’t just test a number on a chart, it tested the collective willpower of a market battered by Bitcoin’s historic crash and a $750 billion evaporation in crypto market cap. The question for traders isn’t whether XRP can hold the line, but whether it even matters if the broader market is still in freefall, or if the real story is the sudden buzz around LiquidChain, the upstart altcoin threatening to siphon off momentum from XRP’s battered bulls.

The last 24 hours have been a masterclass in market whiplash. Bitcoin’s -15% daily candle, slicing off nearly $10,800 and sending the price to the $60,000 handle, triggered a cascade of liquidations across majors and altcoins. XRP, which had been coasting above $1.40 for most of January, found itself in the crosshairs. As reported by Bitcoinist and Coinpedia, the $1.29 level has become the Maginot Line for bulls, with analysts warning that a clean break could open the floodgates to $1.00 or worse. The move wasn’t just technical, it was emotional, with the market’s collective PTSD from previous XRP rug-pulls resurfacing in real time.

But here’s where it gets interesting: while XRP’s defenders are busy drawing Fibonacci lines and praying for a bounce, a new narrative is taking shape. LiquidChain, a project that barely registered on most radar screens a month ago, is suddenly seeing outsized flows and social media chatter. Smart money, according to Coinpedia, has started rotating out of legacy majors and into high-beta altcoins, betting that the next leg up won’t be led by the same old names. The irony is palpable, XRP, once the darling of the “utility” narrative, is now fighting for relevance against a project that promises to do everything XRP does, only faster and with more DeFi hooks.

This isn’t just about XRP. It’s about the psychology of a market desperate for leadership after Bitcoin’s credibility took a hit. The crypto ecosystem is notorious for its short attention span, and the last week has been a case study in how quickly sentiment can turn. The selloff wasn’t confined to spot markets. Derivatives volumes exploded, with open interest in XRP perpetuals on Binance and Bybit dropping by double digits, a sign that leveraged longs were forced to capitulate. The funding rate flipped negative, and the perpetual curve inverted, a classic sign that fear, not greed, is driving the bus.

Historical context matters here. XRP has a long track record of dramatic reversals at key psychological levels, usually when retail is most convinced the end is nigh. The $1.00 level, in particular, has been defended with almost religious fervor in previous cycles, only to give way in spectacular fashion when the broader market loses confidence. What’s different this time is the presence of credible competition. LiquidChain isn’t just another meme coin; it’s backed by real capital and a growing DeFi ecosystem. The rotation out of XRP and into LiquidChain isn’t just a technical trade, it’s a bet on narrative, and in crypto, narrative is everything.

Regulatory clarity, or the lack thereof, continues to hang over XRP like a sword of Damocles. While the SEC’s war on Ripple has faded from the headlines, the scars remain, and institutional flows have been tepid at best. The fact that US spot Bitcoin ETFs have only reduced their holdings by 6.6% despite a 44% drawdown since October 2025 speaks volumes about where the real conviction lies. XRP, by contrast, remains a retail-driven trade, vulnerable to sudden shifts in sentiment and liquidity.

Strykr Watch

Technically, the $1.29 level is the line in the sand. A sustained break below opens up a fast move to $1.00, with little in the way of historical support until the $0.85 zone. On the upside, reclaiming $1.40 would signal that bulls are back in control, but the real test is at $1.50, where previous rallies have stalled. The 50-day moving average is rolling over, and RSI remains stuck below 40, suggesting momentum is still with the bears. Funding rates are negative, and perpetual open interest remains depressed, a sign that the market is still in risk-off mode.

The real wildcard is LiquidChain. If flows continue to rotate into the new hotness, XRP could find itself in the unenviable position of fighting for attention in a crowded field. Watch for volume spikes and social sentiment, if LiquidChain starts printing higher highs while XRP languishes, the rotation narrative could become self-fulfilling.

The risks here are obvious. A break of $1.29 could trigger a cascade of stop-losses and force liquidations, pushing XRP into freefall. If Bitcoin resumes its slide, all bets are off. Regulatory headlines remain a wild card, and any hint of renewed SEC scrutiny could send XRP back to the penalty box. On the flip side, if Bitcoin stabilizes and risk appetite returns, XRP could stage one of its trademark face-melting rallies, squeezing shorts and forcing a rethink of the rotation trade.

Opportunities exist for traders willing to play both sides. A bounce off $1.29 with tight stops could offer a quick scalp to $1.40 or $1.50. For the brave, a break below $1.29 with momentum could set up a short to $1.00 or even $0.85. The asymmetric bet is on LiquidChain, if the rotation narrative sticks, early longs could ride a wave of FOMO-driven inflows.

Strykr Take

This isn’t just another technical retest for XRP, it’s an existential moment. If bulls can defend $1.29 and reclaim lost ground, the narrative could flip fast. But with smart money sniffing around LiquidChain and the broader market still nursing a Bitcoin hangover, the path of least resistance is lower. For now, the edge goes to the bears, but in crypto, the only constant is change. Stay nimble, watch the flows, and don’t get married to yesterday’s winners.