The XRP price remains under pressure as a persistent downward trend negatively affects short-term momentum. The token has struggled to break above the descending resistance since the beginning of the month. This ongoing weakness creates uncertainty in the broader cryptocurrency market.
Despite the decline, some investors see the current level as a strategic entry point and possibly the beginning of a recovery.
XRP bottom in sight
On-chain data shows that the realized price of XRP is now above the current market price. This metric means that the average holder is experiencing losses. If the market price drops below the realized price, assets are often seen as undervalued from a historical perspective, which may indicate a potential bottom.
Past cycles show that XRP rarely stays in this zone for long. Similar situations have previously been followed by rapid price recoveries. While no scenario is certain, historical patterns suggest that these undervaluation phases often lead to accumulation and new buying interest.
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Institutional investors remain notably active despite the overall caution in the market. In the week ending February 20, institutions added $3.5 million in XRP to their portfolios. Thus, inflows this month totaled $105 million — more than Bitcoin or Ethereum, both of which showed net outflows.
The ongoing institutional demand indicates strategic positioning rather than speculative trading. Professional investors often step in during weak periods. Further inflows can provide more liquidity and strengthen the foundation for stabilization of the XRP price.
Also, large XRP holders are showing confidence in the long-term outlook. Wallets with 10 million to 100 million XRP accumulated over 170 million tokens last week. This occurred while the price decreased by 9%.
Accumulation at declining prices indicates that influential wallet holders have confidence. While the increase is not extreme, the timing of purchases is important. Coordinated purchases by whales and institutions can reduce selling pressure and contribute to upward momentum.
As of this writing, the XRP price is at $1.32, remaining below a descending trendline formed earlier this month. The token is still facing technical resistance around this line. As long as market sentiment does not improve, XRP may struggle to break through in the short term.
Now that the support point at $1.36 has been lost, XRP is now looking at $1.28 as an important next level. The macro conditions worsened after the 15% global rate hike by U.S. President Donald Trump. Risk-averse sentiment may spill over into digital assets. Persistent pressure could push the XRP price further towards $1.28 or even $1.21.
Stabilization in the global markets can, however, reverse the momentum. Ongoing whale accumulation and institutional inflows can support recovery attempts. A breakout above the descending trendline would indicate structural improvement. If XRP breaks through the resistance at $1.47, the bearish expectation becomes invalid, and bullish momentum may return.