XRP is once again under pressure as new sales activity and weakening market structure have raised new concerns about whether XRP will be able to sustain support above the critical $1 level.
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After briefly attempting a recovery earlier this month, XRP has reverted back into a correction phase, reflecting widespread weakness across digital asset markets and growing caution among traders.
Recent price movements demonstrate how quickly sentiment can change. What looked like a potential breakout has instead become a new test of investor confidence, with technical indicators and macroeconomic trends shaping the near-term outlook.
XRP price is trending down on the daily chart. Source: XRPUSD on Tradingview
Massive sale of XRP causes new downtrend
The recent drop followed a massive wave of selling on South Korean exchange Upbit, which saw around 50 million XRP offloaded in less than 15 hours. Market data shows that nearly all trades represent genuine spot selling rather than wash trades, suggesting substantial liquidations by retailers and institutional investors.
The decline pushed XRP into the $1.44 to $1.5 range, a two-day low and widened losses across the broader crypto market. Despite a brief rebound attempt in early February, the token is down about 11% in 24 hours and nearly 30% in the last month.
Technically, XRP broke below a multi-month downtrend line, with previous support near $1.51 turning into resistance. Analysts currently see the $1.35-$1.40 zone as an important protective level.
If the stock cannot maintain its defensive zone, the downside price target is $1.30, with February’s lows likely to be around $1.15, with some predicting it will head towards $1.00 if selling pressure continues.
Institutional developments provide mixed signals
Although XRP’s price trend remains weak, developments around the ecosystem paint a more complex picture. Trading data shows that derivatives trading activity is increasing, with open interest increasing and options trading volume surging, with traders actively taking positions around the current volatility.
Meanwhile, comments from SBI Holdings CEO Yoshitaka Kitao revealed that the Japanese financial group owns about 9% of Ripple Labs, rather than billions of dollars worth of XRP, dispelling speculation circulating online.
Regulatory momentum was also highlighted by the addition of Ripple CEO Brad Garlinghouse to the U.S. Commodity Futures Trading Commission’s advisory board, a move seen as a sign of improving relations between the industry and regulators.
Long-term utilities and short-term market pressures
Beyond the market turmoil, XRP ledger activity continues to grow, especially in tokenized real-world assets such as commodities. Data shows that the value of tokenized goods recorded on the network is rapidly increasing, making it one of the leading blockchain platforms in this emerging field.
But analysts caution that network penetration will not immediately cause prices to rise. Broader macro factors continue to weigh on crypto assets, including liquidity rotation into artificial intelligence investments, geopolitical uncertainty, and expectations for prudent monetary policy.
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