XRP's price continues to exert pressure as a gloomy trend forms a short-term direction. The token has struggled to break above the descending resistance level since the beginning of the month. This prolonged weakness has increased uncertainty across the entire cryptocurrency market.
Despite the decline, some investors see the current levels as strategic buying opportunities, creating a base for a potential recovery.
XRP's bottom is visible
On-chain data shows that XRP's realized price is now above the current market price. This metric suggests that the average holder is at a loss. When the market price falls below the realized price, the asset is often considered historically undervalued – this may indicate a bottom formation.
Previous cycles indicate that XRP rarely stays in this range for long periods. Similar conditions have previously preceded rapid price recoveries. Although nothing can be guaranteed, historical patterns suggest that undervaluation phases often attract accumulation and new buying interest.
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Institutional investors are particularly active despite broader market uncertainty. In the week ending February 20, institutions increased their XRP investments by $3.5 million. Monthly investments have risen to $105 million so far – a figure that Bitcoin or Ethereum have not reached, as both recorded net outflows.
Sustained institutional demand reflects strategic positioning, not speculative trading. Professional investors often direct capital during market downturns. Sustainable investments can provide liquidity support for XRP's price stability and reinforce the structure on a broader level. XRP's price stability may thus receive support from investors.
Large XRP holders also seem to trust the asset's long-term prospects. Addresses holding 10–100 million XRP accumulated over 170 million tokens in the past week. This buying enthusiasm occurred while the price fell by 9%.
Accumulation during the decline signals a strong belief among influential wallet holders. While growth has not historically been significant, timing is still crucial. Coordination between whale and institutional investors may alleviate pressures from circulating supply and promote future upward trends.
XRP's price is currently at $1.32, remaining below the downward trend line formed earlier this month. The asset is continuously facing technical resistance at this barrier. Without an improvement in market sentiment, XRP may struggle to rise in the near term.
As support at $1.36 was lost, XRP now aims for $1.28 as the next key level. The broader market situation worsened following U.S. President Donald Trump's 15% global tariff increase. A risk-averse sentiment may strain digital assets, and continued pressure could push XRP's price down to $1.28 or even $1.21.
However, a potential stabilization in global markets could change sentiment. Continued accumulation by whales and institutional investments may support recovery attempts. A rise above the downward trend line would be a sign of structural improvement. If XRP manages to surpass the $1.47 resistance level, the bearish outlook would be invalidated, and bullish sentiment could strengthen again.