XRP is approaching mid-February caught between technical stress and renewed accumulation. After one of its sharpest sell-offs in months, the token has rebounded from recent lows but remains capped below a key resistance zone near $1.50.

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The conflicting signals, extreme oversold indicators, heavy capitulation volume, and steady institutional inflows, are fueling debate over whether XRP is stabilizing or simply pausing before another move lower.

The latest downturn unfolded quickly. XRP fell more than 30% from early January highs, briefly touching the $1.11 level during the February 5 market-wide sell-off. That drop coincided with peak fear across crypto markets, as Bitcoin slid toward $60,000 and broad liquidations erased hundreds of billions in 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 momentum conditions. On the weekly chart, XRP’s Relative Strength Index fell to levels historically associated with market bottoms rather than routine pullbacks.

Analysts such as STEPH IS CRYPTO note that these readings often reflect selling exhaustion, though they do not guarantee an immediate reversal.

Volume data adds weight to that view. During the February 5 crash, XRP recorded its highest single-day trading volume on Coinbase in nearly a year, a pattern some analysts associate with capitulation.

Blockchain Backer, who had warned of a downturn earlier in January, argues that such spikes often mark the later stages of a decline, even if prices still consolidate or retest lows afterward.

XRP Dip Buyers Step In as Institutions Hold Interest

While retail sentiment weakened during the drop, several high-profile investors publicly disclosed dip buying.

Media personality Patrick Bet-David confirmed adding to his XRP position during the sell-off, echoing similar disclosures from market commentator Coach JV. Both framed their purchases as long-term accumulation rather than short-term trades.

Institutional data tells a similar story. XRP was the only major crypto asset to post positive ETF flows last week, attracting roughly $45 million in net inflows while Bitcoin, Ethereum, and Solana products saw outflows.

The bulk of that demand came from Franklin Templeton and Bitwise XRP ETFs, suggesting that some institutions are maintaining exposure despite ongoing price weakness.

The $1.50 Level Remains the Line to Watch

Despite the rebound, technical resistance remains firm. XRP continues to trade below former support zones between $1.50 and $1.65, which now act as supply. Analysts caution that until the price reclaims these levels and begins forming higher lows, recent gains should be viewed as corrective.

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For now, XRP sits at a crossroads. Oversold conditions and steady inflows suggest selling pressure may be easing, but the market has yet to confirm a broader trend change. Whether XRP can turn stabilization into a sustained recovery likely hinges on how it behaves around the $1.50 resistance in the days ahead.

Cover image from ChatGPT, XRPUSD chart on Tradingview