Price Analysis

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

XRP price struggles to hold above $2.20 as seller fatigue sets in. Without a major bullish catalyst, the $2.32 resistance poses major risks.
Published by
XRP Price Analysis: Traders Execute 2 Million Transactions as Trump’s Tariffs Spark Panic Sell-off

Highlights

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.

Advertisement

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.

Ripple (XRP) Price Action | Source: TradingView

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.

Advertisement

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.

XRP Price vs. Daily Transactions

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.

Advertisement

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.

XRP price forecast

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.

Advertisement

Frequently Asked Questions

Will XRP price recover above $2.32 soon?

XRP faces resistance at $2.32 due to recent high-volume sell-offs. A breakout requires strong buying momentum or a bullish catalyst.

What support levels are critical for XRP?

If XRP closes below $2.16, the next major support is at $2.00. Holding above $2.20 could allow for consolidation before another breakout attempt.

Why is XRP struggling to gain momentum?

Bearish macroeconomic factors and heavy selling pressure have capped gains. A lack of strong volume inflows makes a sustained recovery difficult.
Share
ibrahim

Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Price Analysis

Solana Price Prediction as SOL DAT Company Plans 5% Supply Acquisition—Analyst Targets $1,300 Breakout

Solana price continues to attract renewed market interest as analysts and institutions align on a…

October 9, 2025
  • Price Analysis

Bitcoin Price Prediction as US Govt. Shutdown Extends- What’s Next for BTC?

Bitcoin price continues to trade within a defined consolidation range as the broader crypto market…

October 8, 2025
  • Price Analysis

Solana Price Megaphone Points to a Parabolic Move as SOL Treasuries Near $3B

Solana price pulled back today, Oct. 8, mirroring the performance of the broader crypto market,…

October 8, 2025
  • Price Analysis

XRP Price Prediction Amid ETF Approval Roadblock as Analyst Warns of $2.72 Dip

The XRP price continues to draw attention as market analyst, Ali Charts, warns of a…

October 8, 2025
  • Price Analysis

Binance Coin Price Prediction If It Surpasses Bitcoin Marketcap— Is $3000 Possible in 2025?

The BNB Coin price continues to extend its upward trajectory, reflecting consistent market strength and…

October 8, 2025
  • Price Analysis

ASTER vs HYPE Price Analysis – Which Perp DEX Token Looks Poised to Dominate Q4 Performance?

The ASTER price has slipped by 2.37% over the past 24 hours, while the HYPE…

October 7, 2025