Is the $1.51 Wall Too High? XRP Extends Decline Amid $117 Million Stop-Loss Sell-Off

▲ XRP / AI-generated image

XRP appears trapped in a range, unable to overcome downward pressure as it faces strong resistance around $1.51 and a wave of large-scale stop-loss selling by investors.

According to financial media outlet BeInCrypto on February 19 (local time), on-chain data analysis showed that XRP holders realized approximately $117 million in losses in a single day on February 17, signaling a wave of sell-offs. This phenomenon—where investors abandon profits and lock in losses before exiting the market—is cited as a critical factor weakening short-term rebound momentum. Extreme anxiety is effectively blocking fresh buying interest and suppressing price gains.

A thick barrier is also visible in the derivatives market. Around the $1.51 level, roughly $47 million worth of XRP short positions are concentrated, putting them at risk of liquidation if prices rise. Traders holding short positions are maintaining strong selling pressure to defend this level, making a short-term breakout difficult. Although a sharp rally could trigger a short squeeze, current buying power is widely seen as insufficient to absorb the significant volume of sell orders.

Technical indicators also support a bearish outlook. The Relative Strength Index (RSI) has fallen below 40, nearing oversold territory, while the Moving Average Convergence Divergence (MACD) is warning of a potential death cross below the signal line. In particular, declining open interest reflects waning market participation, which could prove to be a critical weakness in defending key support levels. If the psychological support at $1.40 breaks, further declines toward $1.25—the level recorded during the previous downturn—cannot be ruled out.

However, on-chain indicators show that the proportion of mid-term holders has increased from 8% to 15%, a noteworthy development. As short-term investors accelerate their exit, the base of mid-tier investors—who serve as the backbone of the market—appears to be strengthening. Nevertheless, for this shift in supply structure to translate into actual price gains, a broader recovery in investor sentiment across the cryptocurrency market, including Bitcoin (BTC), is necessary. For now, selling pressure accompanied by large realized losses remains the primary factor slowing the market’s recovery.

External conditions are also unfavorable, including the Federal Reserve’s hawkish stance and geopolitical tensions in the Middle East. With Bitcoin facing downward pressure amid uncertainty surrounding U.S. President Donald Trump’s foreign policy and inflation concerns, it is difficult for XRP to stage an independent rally on its own. Ultimately, breaking through the $1.51 resistance level will likely require an end to the wave of stop-loss selling and confirmation of tangible buying momentum, such as institutional capital inflows.

Disclaimer: This article is for investment reference only and we are not responsible for any investment losses arising from it. The content should be interpreted for informational purposes only.