The price movements of XRP in February indicate a market grappling with waning momentum and cautious optimism. Currently, the token is valued at approximately $1.37, reflecting a decline of about 15% for the month. The broader sentiment in the cryptocurrency space remains closely tied to macroeconomic developments and changing liquidity conditions.
Despite the apparent weakening of its short-term structure, various market indicators reveal that traders are monitoring for signs of a potential recovery rather than completely distancing themselves from the asset. The daily chart shows that XRP”s price continues to trend downward.
Investor fatigue is becoming evident as leverage and momentum wane. Recent derivatives data highlights that the Estimated Leverage Ratio for XRP has dropped to around 0.16, suggesting that many heavily leveraged traders have exited the market. This reduction in speculative activity has decreased the likelihood of sudden volatility driven by liquidations. Furthermore, XRP remains below its 50-day and 200-day exponential moving averages, indicating ongoing bearish sentiment.
Data from CoinGlass shows a decline in open interest and calmer funding rates, pointing to fewer aggressive positions taken by short-term traders. Compounding this uncertainty is recent whale activity, with over 31 million XRP transferred to Binance, raising concerns about potential sell pressure if these assets are introduced to the market.
Interestingly, despite the slowdown, analysts observe emerging signals reminiscent of the conditions that preceded XRP”s notable rally in late 2024, triggered by the election of Donald Trump. Three critical indicators have reappeared: an increase in exchange inflows, tightening USD liquidity within automated market-making pools, and diminishing XRP liquidity. Historically, liquidity compression tends to limit available supply during demand surges, often resulting in amplified price movements.
Current USD liquidity has significantly decreased from its highs in late 2025, while XRP liquidity has dipped below levels seen before significant price rallies. Additionally, spot XRP exchange-traded funds (ETFs) experienced net inflows of $3.04 million on February 24, bringing total deposits to over $1.23 billion. This trend signals that institutional interest remains resilient even amid price downturns.
Macroeconomic pressures are also impacting sentiment. More robust-than-expected consumer confidence data from the U.S. has tempered expectations for imminent interest rate cuts by the Federal Reserve. The CME FedWatch Tool indicates that the odds for rate cuts in June have fallen below 50%, which has constrained risk appetite across digital assets.
According to CoinMarketCap, XRP is currently consolidating above the critical support zone of $1.30, while resistance levels are identified at $1.50, $1.60, and $2.00. Analysts assert that a sustained move beyond $1.60 is essential to decisively shift momentum in favor of buyers.
In summary, XRP appears to be transitioning from a market characterized by leverage to one driven by actual spot demand. The potential for recovery or prolonged consolidation will likely hinge on the strength of the broader cryptocurrency market and the resurgence of buying interest.
