XRP Hit by $2 Billion Sell-Off, Can It Recreate a 114% Surge Rally?

▲ XRP / ChatGPT-generated image ©

Amid extreme fear sweeping the crypto market, XRP (Ripple) plunged to the $1.30 level, teetering on the brink. However, hopes are rising for a dramatic rebound rally as record-level capitulation signals and news of a bond issuance by a Japanese financial giant converge.

According to investment media outlet FX Leaders on February 23 (local time), XRP is trading near $1.30, down 6.1% over the past 24 hours, experiencing a beta-driven collapse in tandem with Bitcoin’s decline. It has fallen below both its 7-day simple moving average (SMA) at $1.38 and its 30-day SMA at $1.41, solidifying a bearish structure, while trading volume surged 40.4%, reflecting strong conviction among sellers.

With the Crypto Fear & Greed Index hovering at 14, indicating extreme fear, XRP’s Relative Strength Index (RSI) has plunged to a deeply oversold level of 19.62. However, contrarian investors argue that such indicators signaling peak capitulation could instead present a prime accumulation opportunity ahead of a relief rally.

On-chain data from blockchain analytics platform Santiment strongly suggests a market bottom may be forming. Over the past week, XRP investors realized an enormous $2 billion in losses, marking the largest capitulation event since 2022. The last time losses of similar magnitude occurred 39 months ago, XRP subsequently surged 114% over the following eight months, fueling expectations that the current exhaustion of selling pressure could serve as a springboard for a sharp rebound.

Meanwhile, bold moves by Japanese financial conglomerate SBI Holdings are reinforcing XRP’s long-term fundamentals. Through the ibet for Fin blockchain, the firm has issued $64.5 million worth of tokenized bonds and plans to distribute XRP to investors as rewards through 2029. This is seen as a significant milestone in institutional adoption, recognizing XRP as a regulated fixed-income product within Japan’s mainstream financial system.

XRP’s short-term direction now hinges on whether Bitcoin can defend the $64,000 level. If XRP reclaims the Fibonacci resistance at $1.36, a repeat of the previous 114% surge could unfold, potentially driving prices to between $2.70 and $2.90 within eight months. Conversely, if the recent swing low support at $1.33 breaks, XRP could fall past the psychological support at $1.30, with downside risks extending to the $0.75–$0.85 range in a worst-case scenario.

Disclaimer: This article is for investment reference purposes only, and we are not responsible for any investment losses incurred based on its content. The information provided should be interpreted for informational purposes only.