XRP Stuck in Agonizing Sideways Trade as Major Players Stay Away, Drop to $1.20 Likely if $1.30 Breaks

▲ Ripple (XRP)

Amid a thick wait-and-see sentiment in the cryptocurrency market, XRP (Ripple) remains stuck in a so-called “dead zone” between the $1.30 support and the $1.40 resistance, struggling to find direction. With demand for spot exchange-traded funds (ETFs) evaporating and leveraged liquidations hitting the derivatives market, the spark for an explosive rebound appears to have faded.

According to Trading News on February 24 (local time), XRP is hovering around $1.33 and has failed to break out of the frustrating range-bound pattern that has persisted throughout February. The $1.30 level is serving as the first line of defense with buying interest flowing in, but every attempt to enter the $1.40 to $1.42 zone has been repeatedly blocked by heavy sell orders. The daily Relative Strength Index remains in the low-to-mid 30s, confirming bearish momentum, while the Moving Average Convergence Divergence indicator below the signal line also supports a sell-dominant market atmosphere. In particular, mid-term moving averages clustered in the mid-to-high $1.30 range are acting as significant potential selling pressure, suppressing upward momentum.

The main factors weighing on the market are macroeconomic uncertainty and cooling institutional demand. Policy noise triggered in Washington, including a 10% temporary tariff package and the possibility of a 15% increase, has dampened investor sentiment across risk assets. As a result, new capital inflows into XRP spot ETFs have dried up since late last week, signaling a disappearance of institutional buying. Open interest in the futures market has also continued to decline as leveraged positions are liquidated. While this reduces the risk of mechanical cascading liquidations, it also means that the explosive buying power needed to drive a new trend has vanished.

Ironically, on-chain activity on the XRP Ledger (XRPL) is hotter than ever. Payment transactions have surged to multi-month highs and automated market maker deposits have sharply increased, strengthening network fundamentals. However, the price has plunged 45% from its high earlier this year, creating a severe disconnect. Even whales, who had previously scooped up hundreds of millions of tokens during past dips, have slowed their accumulation as the $1.30 level comes under threat. Meanwhile, retail investors holding fewer than 10,000 tokens are showing a classic capitulation pattern, dumping their holdings in fear amid extreme volatility.

Ultimately, XRP’s short-term trajectory hinges on whether it can break through three key levels. The immediate priority is defending the $1.30 support. If this level collapses on a daily closing basis, the token could face a steep drop toward $1.25 and potentially the low $1.20 range. For a rebound, XRP must decisively break the initial resistance between $1.40 and $1.42 and absorb the persistent selling pressure. Furthermore, to signal a full-fledged return to a mid-term uptrend, it must reclaim the $1.50 to $1.53 zone where major moving averages are concentrated.

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