While recent U.S. employment data created headwinds for the broader cryptocurrency sector, XRP has demonstrated notable resilience. The digital asset appears to be decoupling from macroeconomic pressures, buoyed by substantial ETF inflows and heightened on-chain activity.
Network Growth and Retail Resurgence
Fundamental developments within the XRP ecosystem are providing underlying support. A new funding model, alongside a dedicated $550 million capital provision for the XRP Ledger (XRPL), is generating positive fundamental sentiment.
This institutional interest is being mirrored by a significant return of retail investors. Data from AInvest shows a massive 212 percent surge in retail buying volume between February 23 and 24. This renewed activity is further evidenced by increased usage of self-custody solutions like Ledger Live and Trust Wallet, suggesting investors are adopting a longer-term holding strategy rather than seeking quick trades.
ETF Flows Buck the Wider Trend
The source of recent market uncertainty was U.S. initial jobless claims, which came in at 212,000—below the forecast of 215,000. This dampened expectations for an imminent Federal Reserve interest rate cut in June, a scenario that typically weighs on risk assets. Contrary to the norm, XRP held firm, trading between $1.42 and $1.44 on February 26.
Should investors sell immediately? Or is it worth buying XRP?
The divergence is primarily driven by capital movements. U.S. XRP ETFs have attracted inflows of $70.26 million since the start of the year, with a single $500,000 infusion recorded on February 26 alone. This contrasts sharply with the broader ETF landscape, where Bitcoin spot ETFs faced net outflows of approximately $4.5 billion over the first eight weeks of the year. According to AInvest, the total net assets under management in XRP ETFs have grown to around $1.1 billion since mid-November.
Technical Outlook and Prevailing Risks
From a chart perspective, XRP is currently in a consolidation phase despite the favorable fundamental backdrop. The token is grappling with resistance at the 26-period Exponential Moving Average (EMA). A sustained break above this level is viewed as necessary to target the near-term objective of $1.50. On the downside, the zone between $1.40 and $1.42 provides a key area of support.
External factors remain critical for future price action. Market analysts identify ongoing geopolitical tensions and U.S. regulatory uncertainty as the primary risk factors. However, if ETF inflows persist and the macroeconomic environment stabilizes, observers project a medium-term price target of $2.00 within the next four to eight weeks.
Ad
XRP Stock: Buy or Sell?! New XRP Analysis from February 27 delivers the answer:
The latest XRP figures speak for themselves: Urgent action needed for XRP investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 27.
XRP: Buy or sell? Read more here...
