XRP Price Steadies Above Support, Break Higher Or Fade Again?

XRP price remains range-bound below $1.50, consolidating after a brief recovery above $1.40. The cryptocurrency failed to surpass $1.50 and is now below the 100-hourly Simple Moving Average. A declining channel is forming, with resistance near $1.4050.

Bulls have remained active near the $1.340 support level, which has provided some short-term stability. If the price breaks above $1.4050, it could test $1.4650 and eventually $1.50. A failure to do so could trigger a fresh decline toward $1.25.

Meanwhile, XRP's price dropped over 40% since early January, with key metrics such as network revenue and total value locked declining sharply. Derivatives data and ETF inflows also indicate bearish sentiment.

Why Did This Happen?

XRP's price has been affected by weak institutional and market signals. Derivatives markets show a negative weighted funding rate, suggesting traders are betting on further declines. Spot XRP ETFs have also seen reduced inflows, removing a key stabilizing factor.

A recent Russian bill legalizing XRP for all investors has failed to trigger a significant price reaction. Despite the legislative optimism, the price continues to consolidate around $1.41 after a dip to $1.10.

Technical indicators, including the MACD and RSI, suggest bearish momentum. The RSI is below 50, while the MACD remains in the bearish zone. These signs indicate that downward pressure remains strong unless XRP can break out of its current consolidation.

What Are Analysts Watching Next?

Market participants are closely monitoring whether XRP can reclaim $1.50, a key psychological and technical level. A break above this level could drive the price toward $1.5450 and beyond. If XRP fails to hold above $1.50, it may start a decline toward $1.340 or below.

Institutional investors have shown growing interest in XRP through ETFs. Goldman Sachs, for example, has allocated over $153 million in XRP via spot crypto ETFs, signaling a broader diversification strategy into digital assets.

The Defiance XRP LightningSpread Income ETF, which does not hold XRP directly, has also attracted attention. It uses futures and options strategies to generate monthly income, offering an alternative to spot exposure.

On February 9, ETF inflows for Bitcoin, Ethereum, and XRP were positive, reflecting growing institutional interest. However, Solana ETFs experienced a small outflow, suggesting caution in altcoin investments.

A fresh upward move for XRP must overcome resistance near $1.4050 to test higher levels. If it clears $1.50, further gains may target $1.5250 and $1.550. A failure to break above $1.4050 could trigger a fresh decline toward $1.250 if the $1.2920 level is breached.