XRP is under renewed pressure as renewed selling activity and a weakening market structure have raised new concerns over whether the token can maintain support above the critical $1 level.
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After attempting a brief recovery earlier this month, XRP has fallen back into a corrective phase, reflecting broader weakness in digital asset markets and increasing caution among traders.
Recent price action shows how quickly sentiment can change. What seemed like a potential breakout has instead turned into another test of investor confidence, with technical indicators and macroeconomic trends now driving the short-term outlook.
XRP's price trends to the downside on the daily chart. Source: XRPUSD on Tradingview
Heavy XRP selling creates a new downtrend
The latest decline followed a large wave of resales South Korean stock exchange Upbitwhere approximately 50 million XRP was unloaded within a 15-hour period. Market data shows that almost all activity represented true spot sales rather than wash transactions, indicating that liquidation by private or institutional participants is in fact taking place.
The sell-off pushed XRP to the $1.44-$1.5 range, marking a two-day low and extending losses across the broader crypto market. The token is down around 11% in 24 hours and down almost 30% over the past month, despite a brief recovery attempt earlier in February.
Technically, XRP has broken below a multi-month descending trendline, turning previous support near $1.51 into resistance. Analysts now view the $1.35 to $1.40 zone as a key defense level.
Failure to hold the defense zone could expose downside targets at $1.30 and possibly the February low near $1.15, with some projections pointing towards $1.00 if selling pressure continues.
Institutional developments offer mixed signals
While XRP price action remains weak, developments surrounding the ecosystem paint a more complex picture. Trading data shows that derivatives activity is increasing, with open interest rising and options volume increasing. This indicates that traders are actively positioning themselves around the current volatility.
Meanwhile, comments from SBI Holdings CEO Yoshitaka Kitao clarified that the Japanese financial group has a roughly 9% stake in Ripple Labs instead of billions of dollars worth of XRP, dispelling speculation circulating online.
The regulatory momentum also attracted attention after Ripple CEO Brad Garlinghouse joined an advisory committee to the U.S. Commodity Futures Trading Commission, a move seen as a sign of improving relations between the industry and regulators.
Long-term utility versus short-term market pressure
In addition to market turbulence, activity on the XRP Ledger continues to grow, especially in tokenized real-world assets such as commodities. Data shows rapid growth in the value of tokenized commodities registered on the network, making it one of the leading blockchain platforms in this emerging sector.
However, analysts warn that network adoption will not immediately drive price growth. Broader macro factors, including liquidity rotation towards artificial intelligence investments, geopolitical uncertainty and cautious monetary policy expectations, continue to weigh on crypto assets.
Cover image of ChatGPT, XRPUSD chart on Tradingview