The price of XRP continues to trade under pressure as the ongoing bearish trend is determining short-term momentum. The token has struggled to break through the downward resistance since the beginning of the month. This prolonged weakness has created uncertainty across the broader crypto market.
However, even though prices have decreased, some investors view the current level as a strategic entry point and it may become a base for future recovery.
XRP support is approaching.
On-chain data shows that the actual price of XRP is currently higher than the current market price. This indicator reflects that the average holder is at a loss when the market price is lower than the actual price. The asset is often viewed as undervalued from a historical perspective, which may signal a bottom.
Historical cycles show that XRP rarely stays in this zone for long. Similar conditions often precede rapid price recoveries. Although nothing guarantees outcomes, past patterns indicate that periods when the asset is undervalued often attract new accumulation and buying pressure.
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Institutional investors continue to play a clear role even as the overall market remains cautious. In the week ending February 20, institutions increased their holdings of XRP worth 3.5 million USD, resulting in a total inflow of 105 million USD since the beginning of the month, which no assets like Bitcoin or Ethereum have achieved, while both faced net outflows.
Continuous demand from institutions reflects strategic positioning rather than speculative trading. Professional investors tend to invest during weak market periods. Continuous inflows may help bolster liquidity and reinforce the structural foundation for stabilizing XRP's price.
Major holders of XRP also remain confident in the long-term outlook for this asset, with addresses holding between 10 million and 100 million XRP accumulating over 170 million tokens in the past week. These buying activities occurred while the price of XRP declined by 9%.
Accumulation during price declines demonstrates the confidence of large wallet holders. Although this increase is not considered historically abnormal, the timing is still significant. Concurrent accumulation from whale groups and institutions may help alleviate pressure from the circulating supply and could lead to upward momentum in the future.
Currently, the price of XRP is trading at 1.32 USD, still below the descending trendline established since the beginning of the month. This asset continues to face technical resistance at this level. Without a clear improvement in the overall market picture, XRP may struggle to break higher in the near term.
After losing support at 1.36 USD, XRP is now eyeing the 1.28 USD level as the next key point. The overall situation worsened after U.S. President Donald Trump announced a global tax increase of 15%. A risk-averse investment environment may pressure digital assets, and if downward pressure continues, it could push the price of XRP to 1.28 USD or even 1.21 USD.
However, if the global market begins to stabilize, a momentum shift may occur. Continued accumulation by whales and capital inflows from institutions could provide the necessary support for recovery efforts. If XRP breaks through the descending trendline resistance, it will indicate a structural change. If XRP can surpass the resistance at 1.47 USD, the bearish theory will be invalidated, and upward momentum may return.