$XRP continues to trade under pressure. Since the beginning of the month, the asset has been unable to maintain above the descending resistance line, forming a stable short-term downward trend. Weak dynamics have intensified uncertainty in the digital asset market.
Nevertheless, some investors view current levels as a potential entry point. This is indicated by both on-chain metrics and the behavior of large participants.
The realized price indicates possible undervaluation
According to Glassnode data, the realized price of XRP now exceeds the market price. This means that the average holder is at a loss. Historically, such a configuration often coincided with undervaluation phases.
When quotes drop below the realized price, the asset often forms a local bottom. In previous cycles, XRP did not linger in this zone for long. After such periods, the market demonstrated recovery.
Although it cannot be guaranteed that the scenario will repeat, past models show that the undervaluation phase attracts additional demand. Therefore, interest in accumulation may increase.
Institutional investors have increased their positions
Despite the market's caution, institutional participants remain active. According to CoinShares, for the week ending February 20, the inflow into c-24 instruments amounted to $3.5 million. Since the beginning of the month, the cumulative figure has reached $105 million.
At the same time, a net outflow has been recorded for bitcoin and Ethereum. This dynamic highlights XRP against the backdrop of the largest digital assets.
A sustained capital inflow reflects strategic positioning rather than short-term speculation. Professional investors often increase their portfolio share during correction periods. If the trend continues, it could support liquidity and strengthen market structure.
Large holders have accumulated 170 million tokens
An additional factor is the activity of so-called whales. According to Santiment, addresses with a balance of 10 million to 100 million XRP have increased their total reserves by more than 170 million tokens over the week. Purchases coincided with a price decline of 9%.
Accumulation during a decline signals long-term confidence among large holders. Although the volume is not record-breaking, its timing related to the decline enhances its significance.
Coordinated actions of institutional investors and large addresses can reduce supply pressure. In the long run, this could create a foundation for a trend reversal.
Key levels for XRP
The asset remains below the descending trend line formed at the beginning of the month. As long as this barrier holds, the technical picture remains restrained.
After losing support at $1.36, market attention shifted to the $1.28 mark. Additional pressure is created by macroeconomic factors. In particular, the 15% increase in global tariffs announced by U.S. President Donald Trump heightened caution among investors in risky segments.
If the negative backdrop persists, quotes may test $1.28 and in an unfavorable scenario — $1.21. However, stabilization of global markets could change the dynamics.
A breakout above the descending resistance line will be the first signal of structural improvement. A consolidation above $1.47 will cancel the current bearish scenario and open up space for recovery.