XRP Price Stabilizes, But High-Volume Sell-Offs Cloud Recovery

Ripple (XRP) price stabilized around the $2.20 level on Thursday, Feb. 27, but on-chain data suggests that the recent market dip was accompanied by clusters of high-volume sell-offs. This pattern could significantly slow down the next rebound phase at key price levels, raising concerns among investors about XRP’s near-term trajectory.

XRP price action has leaned overwhelmingly bearish since the start of February, despite several bullish developments, including the SEC dropping charges against Ripple. This marked the end of the regulatory onslaught filed against the company under the outgoing Gary Gensler-led regime. Additionally, XRP had gained momentum when the SEC acknowledged Grayscale’s spot XRP ETF filing, fueling optimism for broader institutional adoption.

However, the market turned sharply negative following a hotter-than-expected inflation CPI report on Feb. 13, the $1.4 billion exploit on Bybit, and former President Donald Trump’s announcement of tariffs on North American neighbors Canada and Mexico. These macroeconomic factors compounded the bearish momentum, dragging XRP price to a three-week low of $2.15 on Feb. 26.

Despite these challenges, bulls made a strong push to reclaim the $2.20 level at press time. Zooming out, XRP has now reached 20% losses since the start of February 2025. However, the sell-off appears to have subsided, with declining volume on Thursday suggesting that short-term sellers may be running out of steam. If demand continues to strengthen, Ripple price could consolidate above this level before making another attempt at higher resistance zones.

XRP staged a mild 2% gain in the early hours of Feb. 27, briefly reclaiming the $2.20 level. However, market sentiment remains fragile as the U.S. tariffs on Mexican and Canadian imports are set to take effect on March 1, casting doubt on the prospects of a sustained recovery.

On-chain data further highlights that high-volume sell-off clusters formed earlier this week could hinder weak rebound attempts. CryptoQuant’s Daily Transactions chart, which tracks the number of unique transactions executed on the XRP Ledger since the start of February, reflects a surge in trading activity tied to key market events. The chart shows that XRP traders executed 2 million transactions on Feb. 25