XRP Price Crashes 70% From ATH: Ripple CEO Cites Warren Buffett as Whale Moves 534M Tokens

On February 6, 2026, the XRP price plummeted to a 15-month low near $1.11, marking a staggering 70% decline from its 2025 peak. Amid this severe market downturn, Ripple CEO Brad Garlinghouse invoked classic investment wisdom from Warren Buffett, advising against panic.

Simultaneously, Ripple executed massive internal transfers of over 534 million XRP, sparking speculation amidst the sell-off. This confluence of extreme fear, high-profile advice, and significant on-chain activity presents a critical juncture for XRP investors. This analysis explores the technical breakdown, the psychological battle for market sentiment, and what the massive token movements could signal for XRP’s future trajectory.

XRP Price Analysis: Breaking Down the 70% Collapse to 15-Month Lows

The first week of February 2026 has been brutal for XRP holders. The token experienced a violent drop of over 20% in a single 24-hour period, crashing through multiple support levels to reach a low of $1.11. This price point represents a 15-month low, a stark reminder of the bearish momentum gripping the asset. From its lofty peak of $3.66 in July 2025, XRP has now erased approximately 70% of its value, significantly underperforming even Bitcoin’s 50% decline from its own all-time high.

This collapse is part of a broader crypto market capitulation. Bitcoin broke below the critical $65,000 support, and Ethereum fell under $1,700, dragging the entire altcoin sector into deep red territory. The Crypto Fear & Greed Index, a key sentiment gauge, plunged to an “Extreme Fear” reading of 5. This metric suggests that investor decisions are currently driven more by emotion and panic than by fundamental analysis or long-term conviction. The sharp sell-off triggered a flight to safety, with many investors converting holdings into stablecoins, exacerbating the downward pressure on volatile assets like XRP.

From a technical perspective, the breakdown below the $1.30 support zone was a significant bearish event. The price is now trading in uncharted territory for the past year, with little historical support to rely on. While an oversold bounce from the $1.11 low has occurred, pushing XRP back to around $1.29, the overall structure remains severely damaged. For any hope of a sustained recovery, XRP must first reclaim and hold above the $1.30 level, which has now flipped from support to a major resistance zone. Failure to do so could see the price retest the $1.11 low and potentially seek lower grounds.

Warren Buffett’s Advice in Crypto: Why Ripple’s CEO is Quoting the Oracle

In the eye of this storm, Ripple CEO Brad Garlinghouse took to social media to share a timeless piece of wisdom from investing legend Warren Buffett. The quote, fundamentally about being “fearful when others are greedy and greedy when others are fearful,” served as a direct counter-narrative to the prevailing market panic. Garlinghouse’s decision to highlight this advice is a strategic communication move aimed at the XRP community and investors at large.

The Contrarian Mindset in a Fearful Market

Garlinghouse’s invocation of Buffett is more than a platitude; it’s an endorsement of a contrarian investment philosophy. When the Fear & Greed Index hits 5 and social media is flooded with doom, the instinctual reaction is to sell. Buffett’s principle, however, suggests this is precisely the time for disciplined investors to assess value and consider accumulation. For XRP, this translates to a key question: are the current prices a reflection of deteriorating fundamentals, or are they an emotional overreption that presents opportunity? Garlinghouse, by aligning with Buffett’s view, implicitly argues for the latter, urging a long-term perspective over short-term emotional trading.

This stance finds an echo in other industry titans. Michael Saylor, Executive Chairman of MicroStrategy, famously reiterated his “HODL” mantra despite his company facing billions in unrealized losses on its Bitcoin treasury. Similarly, author Robert Kiyosaki signaled his intention to resume buying Bitcoin after pausing during its earlier rise. These voices collectively form a narrative of steadfastness against the tide of fear, suggesting that seasoned players view such downturns as cyclical rather than catastrophic. For the retail XRP investor, the message is clear: emotional capitulation often leads to selling at the worst possible time.

Ripple’s Massive 534 Million XRP Transfer Amid the Crash

As prices cratered, on-chain data revealed dramatic activity from Ripple itself. Over a short period, the company moved a staggering 534 million XRP tokens between its internal wallets. The transaction flow was complex: a central wallet, labeled “Ripple (50),” received 300 million XRP from another Ripple address. From there, 117 million XRP were subsequently routed to another address (rnU…R5J), which then forwarded the entire sum to a final wallet identified as rpx…ZY1.

These large-scale internal movements are a routine part of Ripple’s treasury management but are intensely scrutinized by the community during market stress. The destination wallet, rpx…ZY1, has been identified by blockchain analysts as a central hub in recent large-scale XRP transactions. It was linked to the accumulation of 120 million XRP by a new whale in late January and has been a routing point for over 1.59 billion XRP moved since the start of the year. This pattern suggests rpx…ZY1 is likely a dedicated address Ripple uses to facilitate large-scale distributions or operational needs, rather than a random unknown whale.

The timing, however, is provocative. To the average investor, the sight of half a billion XRP on the move during a 20% price crash can be misinterpreted as a preparatory sell-off. In reality, these are likely pre-planned internal reorganizations unrelated to immediate market sales. Nevertheless, they contribute to the negative sentiment by creating a visual of overwhelming supply. It underscores the unique dynamic XRP faces, where the actions of its largest holder are perpetually under a microscope and can indirectly influence market psychology, regardless of the transactions’ actual purpose.

XRP Panic Selling vs. Long-Term Accumulation Signals

The current state of the XRP market presents a clear dichotomy between short-term panic and long-term accumulation signals. On one side, the technical charts are broken, sentiment is at an extreme low, and the broader crypto market offers little support. This environment fuels a self-reinforcing cycle of selling, where each lower low triggers more stop-losses and fear-driven exits. The high trading volumes during the drop confirm active distribution.

On the other side, a compelling contrarian case is being built. The extreme fear reading of 5 on the Fear & Greed Index has historically been a reliable, though not perfect, marker for local market bottoms. The public adherence to “HODL” and Buffett-esque principles by figures like Garlinghouse and Saylor provides a psychological anchor for the community. Furthermore, if the massive Ripple transfers are indeed for operational purposes like fueling ODL (On-Demand Liquidity) corridors rather than direct market sales, the underlying utility demand for XRP remains intact even as its speculative price crumbles.

For investors, navigating this crossroads requires a strategy aligned with their risk profile. Short-term traders might look for a technical rebound toward the $1.30 resistance to gauge strength, but they are navigating highly volatile and risky waters. Long-term holders, meanwhile, are faced with the classic Buffett dilemma: this is a moment of extreme fear, so does it represent a strategic accumulation zone? The answer depends on one’s belief in Ripple’s fundamental outlook regarding its lawsuit with the SEC, the adoption of its payment solutions, and the overall future of digital asset regulation. The price action is alarming, but history suggests that the most confident long-term convictions are often tested in periods just like this.