The cryptocurrency market is pausing for breath after a weak start to the week. Bitcoin, the leading cryptocurrency by market capitalization, reached the $66,000 mark and gained over 3% in value in the last 24 hours. XRP, the native coin of the Ripple ecosystem, is also up 3% and defended the $1.3 support level on Tuesday, despite broader market volatility and emerging trade tensions.
Investor sentiment in risk-on assets like Bitcoin and XRP remains cautious as the United States prepares for a modern temporary 10% tariff for 150 days. This policy shift comes despite the Supreme Court recently overturning earlier tariffs imposed by President Donald Trump, which aimed to reduce the trade deficit. Despite this relief, XRP continues to face downward pressure due to weak demand from derivatives markets and institutional investors.
XRP is currently trading at $1.36 as of Wednesday, February 25, 2026, according to data from The Motley Fool. This slight increase occurs during a prevailing risk-off sentiment, with investors largely remaining on the sidelines. This hesitancy is impacting activity in the XRP spot ETF market.
XRP ETF Inflows Remain Subdued
Data from SoSoValue indicates that XRP ETFs continue to exhibit muted activity, with no inflows recorded since Friday. Cumulative inflows average $1.23 billion, with assets under management totaling $875 million. This suggests limited institutional appetite for XRP-based investment products at present.
The derivatives market is also showing signs of weakness. Open Interest in XRP futures (OI) stands at $2.24 billion on Wednesday, down from $2.29 billion on Tuesday and $2.40 billion on Monday. The OI has steadily declined from a peak of $10.94 billion in July, potentially signaling waning retail interest in the remittance token.
Technical Outlook: Can XRP Reclaim the Weekly High?
XRP is currently trading around the $1.36 region, and its 4-hour chart remains strongly bearish. The coin is trading below the 50-day Exponential Moving Average (EMA), as well as the 100- and 200-day EMAs, underscoring a dominant downtrend. Momentum indicators remain bearish despite the temporary market reprieve, with the Moving Average Convergence Divergence (MACD) line remaining below the signal line, limiting XRP’s short-term recovery potential. The Relative Strength Index (RSI), near 46, indicates weak momentum, though it has not yet entered oversold territory.
Should the recovery continue, XRP could move towards the next resistance level at $1.51, where previous rallies stalled. The next major resistance is the 50-day EMA around $1.64. The $1.30 support level held on Tuesday, providing room for this recovery move. If this support level fails to hold, XRP could fall towards the psychological $1.25 mark. Sustained trading below this level would likely supply control to sellers and maintain downward pressure.
The broader economic climate also plays a role. According to The Motley Fool, Standard Chartered recently slashed its 2026 target for XRP by 65%, from $8 to $2.80, citing a harsh climate and liquidity challenges in the crypto market. This revision reflects shifting perceptions about the token’s utility.
Regulatory Factors and Potential Catalysts
Positive regulatory developments could provide a boost to XRP. The Clarity Act, which would establish a legal framework for the crypto industry, remains stalled in the Senate, though negotiations continue with hopes for passage in the coming months. Interest rate cuts could also ease downward pressure, potentially boosting crypto prices and increasing liquidity. However, the Federal Reserve is unlikely to make cuts before June.
Ripple is actively positioning itself as the blockchain for financial services, which could drive long-term adoption. However, the current market conditions and weak ETF inflows present immediate challenges for XRP’s price recovery.
Looking ahead, XRP’s performance will likely be closely tied to broader market sentiment and regulatory progress. The potential passage of the Clarity Act and any shifts in Federal Reserve policy will be key factors to watch.
What are your thoughts on XRP’s current situation? Share your insights in the comments below and let’s discuss the future of this cryptocurrency.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are inherently risky, and you should always conduct your own research before making any investment decisions.
