XRP Rebounds as Whale Accumulation and Network Activity Signal Price Reversal

XRP is rebounding after hitting support levels near $1.60. Whale accumulation and increased network activity suggest potential for a price reversal. This comes amid broader market volatility and ETF inflows.

Institutional interest in XRP has grown, with Bank of America investing in an XRP ETF. The bank holds around 13,000 shares of the Volatility Shares XRP ETF, valued at $224,640. This move indicates growing confidence in XRP among institutional investors.

Network activity on the XRP Ledger has surged to near record levels. Despite this, XRP's price remains under pressure, trading below key moving averages. The divergence between network usage and price performance has raised questions about market intent.

Why Did This Happen?

XRP ETF inflows have increased, with $19.46 million entering XRP ETFs on February 3, 2026. This indicates growing demand among institutional investors. Whale accumulation has also been notable, with 1,389 whale transactions of $100K or more recorded recently.

The XRP Ledger has seen record transaction volumes and payment counts. These metrics suggest increased adoption and usage of XRP for cross-border payments and stablecoin transactions. However, the price has not yet reflected this growth.

How Did Markets React?

XRP has shown a strong rebound compared to its peers. After hitting a low of $1.24, it has increased roughly 20% in the last 24 hours. This outperformed Bitcoin and Ethereum, which gained 6.5% and 5.2% respectively.

Retail participation in XRP has slowed. Open Interest (OI) has dropped to $2.81 billion, indicating reduced trading activity. This suggests that traders are closing positions rather than opening new ones.

What Are Analysts Watching Next?

Analysts are monitoring key price levels and technical indicators. XRP is currently trading near $1.60, with resistance at $1.6250 and $1.650. A break above these levels would signal a potential recovery.

The Relative Strength Index (RSI) is in oversold territory at 26.15. This suggests that selling pressure may be easing. However, further analysis is needed to confirm a sustained upward trend.

Investors are also watching for signs of renewed demand. Whale accumulation and increased network activity are positive signals, but continued buying pressure is needed to sustain a price reversal. If XRP breaks below the $1.60 support level, it could test the next demand zone at $1.50.

The XRP Ledger's high transaction volumes and payment counts are positive indicators. However, these metrics must be supported by increased buying interest to translate into price stability. The market remains cautious, and further developments in ETF flows and institutional adoption will be key.

Crypto market conditions remain volatile. XRP's price action reflects broader trends, with institutional adoption and regulatory clarity playing crucial roles. Investors should continue to monitor ETF inflows and on-chain activity to gauge market sentiment.

Market participants are also watching for any regulatory developments related to XRP and other cryptocurrencies. The approval of XRP ETFs has been a significant milestone, but ongoing compliance and regulatory scrutiny remain important factors for investors to consider.