XRP Defends $1.50 Threshold Amid Institutional Accumulation and Major Infrastructure Upgrades in Early 2026

As February 2026 commenced, the digital asset XRP exhibited a notable degree of stability, successfully defending the $1.50 psychological threshold despite broader market turbulence. This price action followed a volatile start to the month, where the token dipped to a local nadir of $1.15 during the first week before staging a recovery to reclaim the $1.50 mark by Friday, February 6.

On-chain intelligence from the analytical firm Santiment highlighted that this price rebound was closely linked to aggressive accumulation from institutional-grade investors, commonly referred to as "whales." During the recent market dip, these large-scale participants ramped up their activity, resulting in 1,389 transactions exceeding the $100,000 mark—the highest frequency of such transfers observed in the last four months. Furthermore, the ecosystem has seen a steady rise in "millionaire wallets," or addresses holding at least 1 million XRP, since the beginning of 2026.

While on-chain metrics suggested strength among major stakeholders, the derivatives market painted a contrasting picture of deep-seated pessimism. Funding rates on the Binance platform plummeted into significantly negative territory, indicating that short sellers were paying a premium to maintain their positions against long holders. This specific market condition, which saw funding rates reach their lowest levels since April 2025, underscores a defensive posture among traders who are increasingly hedging against potential further price declines.

This bearish sentiment coincided with a massive "leverage flush" across the derivatives landscape. Open Interest (OI) on Binance saw a substantial contraction, retreating to levels not witnessed since the end of 2024. Across all major exchanges, the aggregate Open Interest fell to approximately $902 million, marking a low for the period since 2024. This is a stark contrast to the 2025 peaks, which frequently ranged between $2.5 billion and $3 billion. Analysts suggest that this removal of speculative leverage effectively de-risks the market by reducing the likelihood of cascading forced liquidations.

From a technical perspective, market analysts are closely monitoring several pivotal price levels. The $1.50 zone currently serves as a critical support floor that bulls must defend to maintain the current market structure. On the upside, the immediate hurdle for a bullish continuation is situated near $1.97. Conversely, a decisive breach below the $1.50 support could trigger a deeper correction toward the $1.20 demand zone.

Beyond the immediate price fluctuations, the XRP Ledger (XRPL) continues to undergo significant architectural evolution. On February 4, 2026, the network successfully activated the "Permissioned Domains" upgrade with an overwhelming 91% approval rating from validators. This feature, based on the XLS-80 standard, introduces a sophisticated access control mechanism at the ledger level, allowing specific functionalities to be restricted to digital wallets that possess the requisite on-chain credentials.

This innovation, championed by Ripple, is strategically designed to facilitate highly regulated financial activities on a public blockchain, serving as a cornerstone for the tokenization of real-world assets (RWA). The activation of Permissioned Domains, when paired with the "Credentials" feature launched in September 2025, provides two of the three essential pillars required for a compliant Permissioned Decentralized Exchange (DEX). These infrastructure advancements are further bolstered by news of a $280 million tokenization initiative in Dubai, which utilizes Ripple’s institutional-grade custody technology.

Ultimately, the XRP market currently reflects a fascinating divergence between short-term speculation and long-term utility. While active derivatives traders maintain a bearish outlook, the sustained accumulation by large-scale investors and the rapid deployment of institutional-grade infrastructure suggest a robust underlying foundation. This contrast highlights a market in transition, balancing immediate volatility against a strategic push toward global institutional adoption.