TLDR
- XRP currently hovers between $1.33 and $1.36 following a nearly 9% weekly decline
- Technical charts display a bear pennant formation suggesting potential downside to $0.80
- February 21 saw more than 31 million XRP deposited to Binance—the highest exchange inflow since January 20
- While the broader crypto market experienced $288 million in weekly outflows, XRP attracted minor inflows
- Critical support level identified at $1.32; breaking below $1.20 may trigger intensified downward momentum
XRP is currently positioned around $1.33 following a roughly 9% decline throughout the previous week. The digital asset has dropped beneath important moving averages as downward momentum intensifies.
Technical analysts have identified a bear pennant configuration developing on XRP’s two-day timeframe. This classic chart formation typically emerges following a significant downward move, characterized by consolidating price movement. The pattern frequently indicates additional downside momentum ahead.
The pattern’s flagpole originated from XRP’s descent into the $1.12 territory. Following that movement, the asset’s price action has consolidated within a tightening triangular formation beneath crucial moving average indicators.
Should XRP breach the lower boundary of this pennant structure, market observers suggest the next downside objective could reach $0.80. Such a move would constitute approximately a 42% decrease from present price levels.
Market analyst BitGuru highlighted $1.22 as a critical support threshold. According to his assessment, maintaining this level could facilitate a gradual price recovery, whereas a breach beneath $1.20 would likely validate bearish market dominance.
Large Holder Movements Signal Potential Distribution
February 21 witnessed over 31 million XRP tokens flowing into Binance. According to CryptoQuant analytics, this marked the most substantial single-day exchange deposit since mid-January.
Major token holders were responsible for the bulk of this movement. Addresses containing more than 1 million XRP contributed 14.5 million tokens, while wallets holding between 100,000 and 1 million XRP added another 14.2 million.
CryptoQuant’s analyst Darkfost calculated the combined transfers represented approximately $45 million in possible selling pressure. His analysis suggests continued distribution activity could restrict XRP’s near-term recovery prospects.
Examining the hourly timeframe, XRP encounters resistance barriers at $1.3650 and $1.3750. Breaking decisively above $1.40 would be necessary to reverse the current short-term bearish bias.
Immediate downside protection exists at $1.3275. Should the price close beneath $1.32, additional support zones at $1.30 and subsequently $1.28 would come into focus.
Investment Product Flows Present Contrasting Signals
Despite the prevailing price weakness, XRP-related investment products registered small inflows during the past week per CoinShares reporting. This occurred while the overall cryptocurrency fund sector experienced $288 million in redemptions for the fifth straight week.
Bitcoin dominated outflows with $215 million in withdrawals. Ethereum similarly posted substantial redemptions. XRP stood among the limited assets capturing new investment capital.
Investors in the United States accounted for $347 million in aggregate crypto withdrawals. European markets presented a contrasting narrative, with Switzerland, Canada, and Germany collectively recording more than $50 million in positive flows.
XRP’s total market capitalization stays above $82 billion with approximately 61 billion tokens currently circulating.
Technical chartist EGRAG CRYPTO is monitoring the monthly 44-period exponential moving average. His analysis indicates a monthly close beneath this indicator could initiate a liquidity hunt toward the $0.65–$0.85 zone. Alternatively, if the level provides support, he anticipates a potential bounce targeting $2.20.
XRP was last quoted near $1.33, with the bear pennant pattern remaining unresolved on the two-day chart.
