This price rebound comes after XRP investors realized nearly $2 billion in profits over the past three days, marking one of the highest profit-taking events in the token’s history.
The recent downturn in the crypto market was influenced by economic policy changes, particularly President Donald Trump’s announcement of tariffs on imports from Canada, Mexico, and China. The news triggered a wave of selling activity, causing major cryptocurrencies, including XRP, to plunge in value. However, as the market digested the impact of these tariffs, XRP has rebounded sharply, attracting renewed bullish sentiment.
XRP Investor Activity and Market Sentiment
The crypto market crash saw increased XRP whale transactions, with large holders active in moving their tokens. According to on-chain data, the heavy selling has come from both long-term and short-term investors, leading to significant spikes in dormant circulation. Heavy selling has been witnessed, which has pushed the weighted sentiment of XRP to levels last seen in November.
The Ripple XRP price made a 30% recovery, signaling a potential bullish move ahead. Source: Inv16 via X
Funding rates for XRP also plummeted to lows last observed in August, reflecting bearish sentiment among derivatives traders. However, historically, such negative sentiment often precedes a strong recovery as the market tends to move in the opposite direction when extreme pessimism sets in. This appears to be playing out for XRP, which has bounced back impressively despite the recent uncertainty.
Key Technical Levels for XRP’s Price Action
Following the crash, XRP dropped below the $2.00 psychological level, triggering $103 million in futures liquidations within a single day—the highest recorded liquidation event for the token in this market cycle. As the wider market began to rebound, XRP reclaimed some key price levels and is currently targeting the $3.00 mark.
XRP price is currently holding above the $2 psychological support. Source: 3Commas on TradingView
Technical indicators reveal that the Ripple XRP price is very close to a possible breakout. The RSI and Stochastic Oscillator are trending upwards, indicating an increase in bullish momentum. If XRP can break above the descending trendline resistance, which has been in place since January 16, it could retest the important $3.40 resistance. A strong move above this level may open up the possibility of an all-time high above $3.55.
Exchange Inflows and Potential Sell-Off Risks
While the rally by XRP was impressive, on-chain metrics have tended to suggest that whales have been sending large amounts of XRP to exchanges and might thus be preparing for a new sell-off. In the last 24 hours alone, over $80 million worth of XRP has been sent to exchanges—possibly a sign of profit-taking activity.
The surge in XRP inflow ignites major sell-off risks. Source: CryptoQuant
Despite such a view, technical analysts remain optimistic about the XRP trajectory. For the rally to sustain, the token needs to hold the momentum and close above $2.70 or $2.65 in the short term. Failure to hold these levels could see XRP pull back toward $1.96, thereby invalidating the bullish scenario.
Watch – XRP Technical Analysis
Market Outlook Amid Policy Uncertainty
The general cryptocurrency market is sensitive to changes from a geopolitical and economic policy perspective. Decisions with regard to tariffs by President Trump proved effective in changing market sentiment, as considerable fluctuations in digital asset prices were observed. Bitcoin and some other major cryptocurrencies faced steep declines before recoveries, which has proved how volatile today’s market atmosphere is.
XRP price returned above the $2.50 support, up 10.08% in the last 24 hours as of press time. Source: XRP Liquid Index (XRPLX) via Brave New Coin
Going forward, investors are keenly watching developments in policy and market trends to see the sustainability of this recovery. While this strong bounce back by XRP is a great indicator, the market is always unpredictable, and traders will have to play with resistance levels and external economic factors with care. If the bullish momentum is sustained, XRP might be positioned for further gains, but one still has to be cautious in an ever-changing market landscape.
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