XRP Price Analysis: Traders Execute 2 Million Transactions as Trump’s Tariffs Spark Panic Sell-off

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.

Ripple (XRP) finds support at $2.20 as seller fatigue sets in

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 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.

Rebound prospects at risk as sellers execute 2 million transactions in high-volume sell-offs

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, coinciding with the market’s reaction to Trump’s latest tariff announcement. This represents a three-week high in transaction volume, with the last comparable spike occurring on Feb. 3, when Deepseek’s breakout triggered a U.S. tech stock sell-off that spilled into the crypto markets.

Historically, when sharp price downswings align with high transaction volume, it indicates that a significant number of traders executed sell orders. As a result, when XRP approaches these key price levels during the next rebound phase, those who previously bought in at those levels may opt to exit at break-even points, creating additional resistance.

For context, XRP opened at $2.70 on Feb. 3 before declining sharply and later opened at $2.32 on Feb. 25. Given the volume spikes observed at these points, XRP price is unlikely to break above these levels without a major bullish catalyst that triggers a rapid buying frenzy. Without such a catalyst, XRP’s next attempt to breach resistance could falter, keeping the price trapped in a tight consolidation range.

XRP price forecast: $2.32 resistance could cap recovery efforts

XRP price struggles to gain upside momentum after a steep five-day decline that erased nearly 25% of its value, sinking to $2.16. The Bollinger Bands indicate increased volatility, with the price currently testing the lower band, a sign of oversold conditions. While this could attract dip buyers, the lack of strong volume inflows suggests bulls face resistance in staging a sustainable recovery.

The 50-day moving average at $2.51 remains well above current levels, reinforcing the bearish control. XRP must reclaim this level to restore bullish confidence.

Meanwhile, the Bull-Bear Power (BBP) indicator at -0.50 highlights persistent bearish pressure, a key signal that sellers remain dominant. Until this turns positive, upside attempts are likely to fizzle out.

A decisive close below $2.16 could open the door for a deeper correction, with the next major support near $2.00. Conversely, reclaiming $2.32—where the last rebound attempt failed—could signal early recovery signs.

However, given the lack of bullish momentum and heavy sell-side volume, the path of least resistance remains downward unless a strong catalyst emerges.