XRP Outperforms Bitcoin and Ethereum as Price Hits Bottom; Is there a reversal coming?


The price of XRP recently fell below $1.50, extending its correction and returning the bottom signal seen almost two years ago. This decline has pushed XRP below its realized price, a key metric in the chain.

Panic selling followed, but some investors saw this weakness as a potential opportunity. However, historical patterns indicate deeper stability or an emerging valuable zone of accumulation.

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XRP holders are selling

Investors are increasingly skeptical The price of XRP suffered To achieve tangible recovery. Both individual shortholders and large investors reduce exposure. The lack of sustained upward momentum has weakened confidence, reinforcing concerns about prolonged downside risks in the current cryptocurrency market cycle.

On-chain data shows that addresses holding between 10,000 and 100,000 XRP have shorting positions. He also sold larger wallets holding between 100 million and 1 billion XRP aggressively. Collectively, these groups have sold about 350 million XRP in the last five days.

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XRP Whale Holding
XRP Well Holding. Source: feeling

This wave of distribution is estimated to be more than $483 million. These large inflows highlight the growing pessimism among the main market participants. Continued selling by whales often impacts broader sentiment, increasing short-term volatility and putting pressure on XRP price stability.

Is XRP Steady Decline or Steady Decline?

The general forecast for XRP focuses on the price measure achieved. The realized price reflects the average cost base of all currencies in circulation. It provides a clearer view of an investor’s overall position compared to just the spot price.

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currently, XRP spot price trading Below the price obtained.

When the spot price falls below the realized price, the market often enters a losing phase. This condition was last observed in July 2024. Historically, such arrangements can indicate a potential bottom.

However, recovery is not always immediate and may require extended consolidation.

Realized Price XRP
XRP Check price. Source: Glass node

A similar pattern developed in 2022. After the beginning of rally 2021, XRP began to decrease gradually.

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When the price fell to the price reached in May 2022, the bottom extended until March 2023. If history repeats itself, XRP may go through a long consolidation phase instead of a quick recovery.

Institutions are still optimistic

Despite the caution of individuals, institutional investors continue to show interest in XRP. According to data from CoinShares, XRP recorded flows of $63.1 million in the week ending February 6. It surpassed Bitcoin, Ethereum and Solana during the same period.

Total year-to-date flows in XRP products now stand at $109 million. By contrast, Bitcoin and Ethereum saw net flows. This difference indicates which institutions You can see XRP being used for interest Cross-border payments are flexible in the broader digital asset market.

Institutional flows of XRP
Institutional flows in XRP. Source: Queen’s action

Institutional flows can provide support to prices during periods of weakness. The continued allocation of capital by asset managers can limit the risk of a price decline. While not eliminating volatility, these flows may prevent the XRP price from extending its bottom in a prolonged consolidation cycle.

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The XRP price is back on the cards

The XRP price is trading at $1.38 at the time of publication, maintaining a slight increase from the support level of $1.37. The short-term outlook appears to be almost optimistic amid mixed signals from investors. While selling pressure remains evident, institutional flows and underlying historical patterns offer cautious optimism.

Immediate purpose For XRP It claims $1.52 as support. This level can act as a psychological pivot, reducing selling pressure. If the investor sentiment improves and buy resumes, the price of XRP can increase towards $1.77 and can test the limit of $2.00.

XRP Price Analysis
XRP Price Analysis. Source: TradingView

However, the inability to generate sustained upside momentum will increase downside risks. A decisive breakout could lead to below $1.37 To offer XRP At $1.26. Losing this level can invalidate constructive expectations and pave the way towards $1.12 under continued market weakness.



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