Is XRP close to an inflection point? Oversold Reading Against Key $1.50 Resistance
XRP approaches mid-February caught between technical pressure and renewed rally. After the sharpest sale in months, the token rebounded from the recent decline but remains below the important resistance area near $1.50.
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Conflicting signals, oversold indices, high liquidity, and strong institutional inflows fuel the debate as to whether XRP is stabilizing or just stalling before another pullback.
The latest decline happened quickly. XRP has fallen more than 30% since the beginning of January, briefly touching the $1.11 level during the market-wide sell-off on February 5. That drop coincided with a major panic in the entire crypto market, as Bitcoin slid to $60,000 and a broad shutdown wiped hundreds of billions from market value.
XRP's price trends to the downside on the daily chart. Source: XRPUSD on Tradingview
Oversold Signals and Capitulation Volumes
Technical analysts point to unusual conditions of momentum. On the weekly chart, XRP’s Relative Strength Index dropped to levels associated with market history rather than a normal pullback.
Analysts like STEP IS CRYPTO note that these readings often indicate sell-off fatigue, even if they don’t confirm the current reversal.
Volume data adds weight to that view. During the February 5 crash, XRP recorded its highest one-day trading volume on Coinbase in nearly a year, a pattern some analysts attributed to capitulation.
Blockchain Backer, which had warned of a decline in early January, says that such spikes usually mark the later stages of a decline, even if prices are still consolidating or retesting declines afterwards.
XRP Dip Buyers Move In As Institutions Are Interested
While retail sentiment weakens during the downturn, several high-profile investors have openly disclosed dip buying.
Media host Patrick Bet-David confirmed the addition to his XRP position during the sale, echoing a similar disclosure by market analyst Coach JV. Both put their purchases as long-term accumulation rather than short-term trading.
Institutional data tells a similar story. XRP was the only major crypto asset to post positive ETF flows last week, attracting nearly $45 million in inflows while Bitcoin, Ethereum, and Solana products saw outflows.
The bulk of that demand came from the Franklin Templeton and Bitwise XRP ETFs, suggesting some institutions are maintaining exposure despite continued price weakness.
The $1.50 Level Remains The Watch Line
Despite the iterations, resistance to technology remains strong. XRP continues to trade below previous support areas between $1.50 and $1.65, which is now serving as supply. Analysts warn that until the price regains these levels and starts to make a higher decline, recent gains should be considered corrective.
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Currently, XRP is sitting at a crossroads. Oversold conditions and strong inflows suggest that selling pressure may ease, but the market has yet to confirm a broad trend change. Whether XRP can turn stability into a sustained recovery may depend on how it behaves during the $1.50 resistance in the coming days.
Cover image from ChatGPT, XRPUSD chart on Tradingview
