XRP price continues to trade under pressure as a persistent downtrend shapes short-term momentum. The token has struggled to break above descending resistance since the beginning of the month. This prolonged weakness has created uncertainty across the broader crypto market.
Despite the downturn, some investors view current levels as strategic entry points, forming the base for a potential recovery.
XRP Bottom In Sight
On-chain data shows XRP’s realized price now sits above the current market price. This metric indicates that the average holder is at a loss. When the market price falls below the realized price, assets are often considered undervalued from a historical perspective, marking a potential bottom.
Past cycles reveal that XRP rarely remains in this zone for extended periods. Similar conditions have preceded swift price rebounds. While no outcome is guaranteed, historical patterns suggest that undervaluation phases often attract accumulation and renewed buying interest.
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How Are XRP Investors Acting?
Institutional investors remain notably active despite broader market caution. For the week ending February 20, institutions added $3.5 million worth of XRP exposure. This brought month-to-date inflows to $105 million, a figure unmatched by Bitcoin or Ethereum, which both recorded net outflows.
Sustained institutional demand reflects strategic positioning rather than speculative trading. Professional investors often deploy capital during periods of weakness. Continued inflows may provide liquidity support and strengthen the structural foundation for XRP price stabilization.
Large XRP holders also appear confident in the asset’s long-term outlook. Addresses holding between 10 million and 100 million XRP accumulated more than 170 million tokens over the past week. This buying activity occurred during a 9% price decline.
Accumulation during falling prices signals conviction among influential wallet holders. While the increase is not historically extreme, timing remains significant. Coordinated accumulation from whales and institutions may reduce circulating supply pressure and contribute to eventual upward momentum.
XRP Price Levels To Watch
XRP price is trading at $1.32 at the time of writing, remaining below a descending trendline established earlier this month. The asset continues to face technical resistance along this barrier. Without a clear improvement in broader market sentiment, XRP may struggle to break higher in the near term.
After losing support at $1.36, XRP now looks toward $1.28 as the next key level. Macro conditions worsened following US President Donald Trump’s 15% global tariff hike. Risk-off sentiment may weigh on digital assets. Continued pressure could push XRP toward $1.28 or even $1.21.
However, stabilization in global markets could shift momentum. Ongoing whale accumulation and institutional inflows may support recovery attempts. A breakout above the descending trendline would signal structural improvement. If XRP clears $1.47 resistance, the bearish thesis would be invalidated, and bullish momentum could reemerge.
