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XRP Stabilization Signals Potential Recovery After 54% Correction

XRP Stabilization Signals Potential Recovery After 54% Correction

Author:
XRP News
Published:
2026-02-04 20:11:15
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XRP is showing tentative signs of stabilization following one of its most significant pullbacks in recent months, with the digital asset declining approximately 54% from its recent cycle peak. This correction magnitude, historically associated with consolidation or recovery phases rather than prolonged downturns, suggests potential for a rebound. Despite broader cryptocurrency markets remaining under pressure, XRP briefly approached recent lows during the latest market-wide selloff but avoided a new breakdown, indicating underlying resilience. The quick rebound observed in XRP's price action points to accumulation at lower levels and diminishing selling pressure. Technical analysis reveals that such steep corrections often precede periods of sideways movement or upward reversals, particularly when the asset holds key support levels. Market sentiment surrounding XRP appears to be shifting from panic to cautious Optimism as the asset demonstrates relative strength compared to other cryptocurrencies experiencing more severe declines. Fundamental factors continue to support XRP's long-term prospects, including ongoing developments in its payment network infrastructure and regulatory clarity advancements. The current stabilization phase provides an opportunity for the asset to establish a solid foundation before attempting to reclaim lost ground. Historical patterns suggest that assets experiencing corrections of this magnitude frequently undergo consolidation periods lasting several weeks before resuming upward trajectories. Investors are closely monitoring whether XRP can maintain its current support levels and build momentum for a sustainable recovery. The absence of new lows during recent market turbulence indicates that selling exhaustion may be setting in, creating conditions favorable for accumulation by long-term holders. As of February 2025, market participants are watching for confirmation signals that would validate the stabilization thesis and potentially trigger the next upward phase in XRP's market cycle.

XRP Shows Signs of Stabilization After Sharp Decline

XRP is tentatively stabilizing after one of its steepest pullbacks in months, even as broader crypto markets remain under pressure. The digital asset has declined roughly 54% from its recent cycle high—a correction magnitude that historically precedes consolidation or recovery rather than prolonged downturns.

During the latest market-wide selloff, XRP briefly approached recent lows but avoided a new breakdown. The quick rebound suggests buyers are stepping in earlier than in previous cycles, with the 50-55% decline range often marking exhaustion of selling pressure.

Notably, XRP held above its prior low while Bitcoin and ethereum tested new short-term lows. This higher low formation signals weakening downside momentum, with buying interest appearing more consistent on the rebound—a potential sign of accumulation at current levels.

XRP Futures Surge 749% as Traders Bet on Price Rebound

XRP futures markets erupted with activity as net flows surged 749% within four hours, reaching $10.67 million. The rebound follows a brutal liquidation event that wiped out $69.42 million in long positions on January 30.

Leveraged traders are returning after XRP's price stabilized above $1.6, recovering from a $1.52 low. The futures influx suggests growing conviction that the worst of the selloff has passed.

Twelve-hour flows turned positive at $4.94 million, signaling restored market confidence. This comes as the broader crypto derivatives market shows renewed risk appetite after recent volatility.

Ripple Joins White House Summit on Stablecoin Regulation

Ripple participated in a high-level WHITE House summit focused on stablecoin regulation, alongside key players from both the crypto and traditional finance sectors. The closed-door meeting addressed the contentious issue of stablecoin yields, which has become a stumbling block in market structure legislation.

Banking representatives voiced concerns about unregulated stablecoin yields drawing deposits away from traditional institutions. Crypto firms countered that prohibiting such yields WOULD stifle innovation and limit consumer benefits. Patrick Witt of the President’s Council of Advisors for Digital Assets struck an optimistic tone about potential regulatory compromise.

The discussion brought together crypto heavyweights like Coinbase, Tether, and Kraken with traditional financial institutions including Fidelity and SoFi. Lobbyists and policy experts joined the two-hour session, underscoring the growing convergence of digital assets and mainstream finance.

XRP Technicals Suggest Macro Breakout Potential Amid Decade-Long Bullish Structure

XRP's price action continues to command attention as analysts identify a persistent ascending channel spanning ten years. The cryptocurrency has consistently respected macro support trendlines, even during volatile corrections, reinforcing its bullish framework.

Elliott Wave patterns and RSI indicators point to a momentum reset following prolonged consolidation. Fibonacci extensions align with historical expansion zones, mirroring patterns observed in prior cycles.

Notably, a 2017 fractal comparison suggests potential long-term upside targets NEAR $270. Current price compression appears to be forming a springboard for macro expansion, provided key structural supports hold.

Retail Investors Dominate XRP Holdings Despite Bearish Pressure

On-chain data reveals a striking concentration of retail participation in XRP, with 81% of the 7.5 million wallets holding less than 500 tokens. This distribution underscores the asset's appeal to small-scale investors, even as its price faces sustained bearish pressure since late 2025.

Remarkably, wallet growth has defied market sentiment. The network continues to attract new participants, suggesting grassroots confidence persists where price action falters. Such divergence between adoption and valuation often precedes volatile reversals in crypto assets.

XRP Investors Eye $10 Price Target Amid Bullish Momentum

Investors who acquired XRP at $1, $1.50, or $2 since December 2024 stand to realize significant gains if the cryptocurrency reaches its projected $10 price target. Analysts and community sentiment suggest growing bullish momentum, with historical trends supporting the potential for upward movement.

The $10 threshold has emerged as a focal point for market participants, reflecting broader optimism in XRP's long-term valuation. Key drivers include institutional interest, regulatory clarity, and increasing adoption in cross-border payments.

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