After Rebounding from a 43% Plunge, Can XRP Reclaim the $1.57 Level?

▲ Ripple (XRP)

XRP (Ripple), which had been struggling in a prolonged slump, is now staging a dramatic turnaround on the back of explosive buying pressure and inflows into exchange-traded funds (ETFs).

According to Trading News on February 26 (local time), XRP rebounded strongly from the $1.34 to $1.37 support zone, soaring to around $1.47 intraday. The roughly 6% rally comes as welcome relief to a market that had been exhausted after a 43% plunge from its January high of $2.40. Notably, when XRP broke above $1.37, trading volume surged to 259 million tokens—more than double the usual level—while spot buying jumped 212%, more than twice the selling pressure, drawing significant market attention.

Behind this powerful buying momentum is an analysis that heavyweight capital is filling the void left by short-term speculative traders who exited the market in mid-February, realizing losses totaling $1.93 billion. Indeed, while funds have been flowing out of spot Bitcoin ETFs, XRP ETFs have continued to attract steady inflows, pushing their net assets beyond $1.1 billion. This suggests that institutional investors are rebalancing their portfolios away from crowded market leaders toward altcoins offering new risk-reward profiles.

Technical indicators are also turning positive. Although the weekly chart still reflects selling pressure, the daily MACD histogram has flipped into positive territory, signaling that downward momentum is easing. The immediate priority is to solidify the $1.40 to $1.42 range as firm support. If successful, XRP could break through the short-term resistance at $1.45 and extend gains toward $1.50 and $1.57. Conversely, if the critical $1 support level collapses, the market risks slipping back into a prolonged downturn.

Fundamental factors are also supporting the bullish outlook. The legal battle with the U.S. Securities and Exchange Commission concluded in January 2025 with a $125 million fine, resolving a major regulatory overhang. Meanwhile, the use of cross-border remittance rails, particularly in the Korean market, continues to expand. Additionally, the XRP Ledger is evolving beyond a simple payment network into a broader asset platform, with tokenized U.S. Treasuries and USDC now issued on the network. Although Standard Chartered has lowered its mid-term target price to $2.80, multiple AI forecasting models present more optimistic projections ranging from $2.15 to as high as $10, citing ecosystem expansion.

In conclusion, XRP stands at a critical juncture as it attempts to build a new trend above $1.37 after recovering from a 43% plunge. While macroeconomic uncertainties remain, the cleansed leverage environment, $1.1 billion in ETF inflows, and tangible ecosystem growth suggest that, with strict risk management guarding against a break below the $1.37 support level, a buy-biased approach may be worth considering.

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