Ripple [XRP] remains one of the top five cryptocurrencies by market capitalization to record one of the steepest drawdowns in the past 24 hours, dropping 9%.
At press time, XRP traded at $1.50. Market sentiment indicated this may not be the final stop, as speculation intensified and the momentum supporting a potential recovery continued to slow.
AMBCrypto examined the broader picture to identify the key bullish and bearish factors shaping XRP’s near-term trajectory.
Fundamentals remain rock solid
XRP’s fundamentals remain strong, highlighting sustained investor conviction. Long-term holders continue to accumulate, demonstrating active engagement in the market despite recent weakness.
CoinMarketCap reports that the total number of XRP holders reached 507,110 as of the 16th of February, marking a new all-time high.
This continued accumulation—especially during fragile market conditions—reinforces the token’s underlying strength. Over the past seven months, XRP has declined 58.9% from its all-time high of $3.66.
Yet holder growth persists, confirming a robust foundation of long-term investors.
Source: CoinMarketCap
Ongoing accumulation builds a strong base for a potential rebound in the near term, particularly when broader market sentiment stabilizes.
Institutional confidence also remains evident.
In a post on X, the chairman and president of SBI Holdings Inc., a major Japanese financial conglomerate, reaffirmed that the firm maintains a 9% stake in Ripple Labs, the company behind XRP.
“When it comes to Ripple Labs’ total valuation, which includes the entire ecosystem Ripple has built, that would be enormous. SBI owns more than 9% of that,” he stated.
Such institutional backing underscores XRP’s long-term potential and investor confidence.
Perpetual traders drive near-term weakness
Despite strong fundamentals, XRP’s recent underperformance stems largely from activity in the derivatives market.
Short sellers are aggressively positioning for downside, profiting from declines, which led to approximately $13.5 million in liquidations among bullish traders.
CoinGlass data shows a sharp contraction in available capital alongside a rise in short contracts, intensifying pressure on the market.
Source: CoinGlass
As the price declined, capital in XRP’s perpetual market dropped $245.7 million, with Open Interest now at $2.6 billion.
The Open Interest-Weighted Funding Rate, which measures whether liquidity favors bulls or bears, fell to 0.0101%, indicating that bearish positions dominate.
This trend suggests that continued pressure from perpetual traders could weigh further on XRP, even as its fundamentals remain solid.
Price outlook and key levels
Chart analysis does not yet indicate a clear bullish or bearish trend, but the next moves will determine direction.
Given current bearish pressure, XRP could test the lower demand zone highlighted in the blue rectangle before attempting to challenge the descending resistance line.
If bullish momentum returns, the token may rally toward the recent wick low of $1.67, formed on the 15th of February.
However, if selling pressure persists, XRP could break below the descending channel, potentially trending toward $1.11.
Source: TradingView
On a broader scale, XRP remains confined within a descending channel.
While this reflects ongoing selling pressure, the pattern is traditionally considered a bullish formation once the price breaks above the upper resistance zone, signaling a potential reversal.
For now, perpetual trader activity is the dominant factor shaping XRP’s short-term trajectory, even as long-term fundamentals continue to indicate strength and commitment from both retail and institutional holders.
Final Summary
- XRP fundamentals remain solid, with holders reaching a new high above 507,110.
- Perpetual traders appear to be driving recent declines as capital tilts toward bears.