XRP Investors Show Signs of Fatigue Amid 15% Monthly Drop, Are Bulls Preparing a Comeback?
XRP’s worth motion in February has mirrored a market caught between fading momentum and cautious optimism. After weeks of regular decline, the token is buying and selling close to $1.37, down roughly 15% for the month, whereas broader crypto sentiment stays delicate to macroeconomic alerts and shifting liquidity circumstances.
Despite a weakening short-term construction, a number of market indicators recommend merchants are carefully anticipating early indicators of a potential restoration quite than abandoning the asset altogether.
Market Fatigue Emerges as Leverage and Momentum Decline
Recent derivatives knowledge factors to rising investor exhaustion. According to analytics, XRP’s Estimated Leverage Ratio has fallen to round 0.16, indicating that closely leveraged merchants have largely exited. This discount in speculative positioning has lowered the chance of sudden liquidation-driven volatility.
Price construction helps that cautious temper. XRP continues to commerce under its 50-day and 200-day exponential shifting averages, signaling persistent bearish stress. Data tracked on CoinGlass exhibits declining open curiosity alongside calmer funding charges, suggesting fewer aggressive bets from short-term merchants.
Meanwhile, whale exercise has added uncertainty. More than 31 million XRP had been lately transferred to Binance, elevating considerations about potential promote stress if these holdings attain order books.
Three XRP Pre-Rally Signals Reappear
Despite the slowdown, analysts word similarities with circumstances that preceded XRP’s late-2024 rally, when costs surged following Donald Trump’s election victory. Three indicators have resurfaced: rising change inflows, tightening USD liquidity in automated market-making swimming pools, and shrinking XRP liquidity.
Liquidity compression traditionally reduces accessible provide in periods of renewed demand, usually amplifying worth motion. Current USD liquidity ranges have dropped considerably from late-2025 highs, whereas XRP liquidity has fallen under thresholds seen earlier than the earlier breakout.
Similarly, spot XRP exchange-traded funds recorded $3.04 million in web inflows on February 24, pushing cumulative deposits above $1.23 billion, a signal that institutional participation stays regular even throughout worth weak spot.
Macro Pressure and Key Levels to Watch
Macroeconomic components proceed to weigh on sentiment. Stronger-than-expected U.S. shopper confidence knowledge decreased expectations of near-term Federal Reserve rate of interest cuts. The CME FedWatch Tool confirmed June rate-cut odds slipping under 50%, limiting danger urge for food throughout digital property.
According to CoinMarketCap’s pricing aggregates, XRP is consolidating above the $1.30 assist zone, whereas resistance ranges sit at $1.50, $1.60, and $2.00. Analysts recommend a sustained transfer above $1.60 could be required to shift momentum decisively in favor of patrons.
XRP seems to be transitioning from a leverage-driven market to 1 pushed by real spot demand. Whether that shift turns into the muse for a restoration or an prolonged consolidation part will doubtless rely on broader crypto market energy and renewed shopping for curiosity.
Cover picture from ChatGPT, XRPUSD chart on Tradingview
