XRP in mid-range: Is it a technical rebound or a sign of a structural correction?

Ripple’s creature is going through a phase where moving averages have entered a resting stage, marking an inflection point that divides investors between hope for a rebound and fear of a deeper correction. While charts show contradictory signals, the cross-border payments ecosystem continues to operate under technical pressure. The current scenario reflects how an asset with solid fundamentals can fall victim to unpredictable market cycles.

The Collapse of $1.88: A History of a Historic Support Level Giving Way

XRP has experienced a significant pullback from its early January highs. What was once considered an insurmountable fortress at $1.88 has been left behind, with the coin currently trading at $1.44 according to data from February 10, 2026. This 23% decline from recent all-time highs reflects how the market redistributes positions as initial euphoria dissipates.

During the last week of January, $40.6 million was withdrawn from XRP exchange-traded funds (ETFs). To put it in context: this does not represent a confidence collapse, but rather a natural cycle where early investors take profits and leveraged traders are forced to close positions. The market is doing its cleanup work, though at a painful price for those who bought at the highs.

Institutional Money and Volume: Signs of Accumulation vs Panic

Trading volume has fallen approximately 50% in recent days, an indicator that warrants careful attention. A panic-selling market usually shows volume spikes; a market holding its breath looks like this: calm, compressed, waiting for a catalyst.

The resting moving averages precisely reflect this state: a pause where neither bulls nor bears are applying decisive pressure. ETF withdrawals, although significant in dollars, are modest in the context of XRP’s market capitalization. Institutional money has not disappeared; it is simply rotating into other sectors or waiting for more attractive entry levels.

The $1.77 below and $1.95 above now define the boundaries of this consolidation zone. If the price again breaks below $1.77, we could see a move toward $1.60. Conversely, breaking above $1.95 would open a path toward $2.03-$2.06 where stronger technical resistances lie.

Ripple’s Fundamentals Remain Intact: ODL and Regulatory Clarity

Where many crypto projects live on unfulfilled promises, Ripple has a very real competitive advantage: On-Demand Liquidity (ODL). This network connects over 300 financial institutions worldwide and processes international transfers with unprecedented speed and cost.

Another fundamental strength that many do not properly value is the regulatory clarity Ripple has achieved in the United States after years of litigation. While other tokens operate in a regulatory gray area, XRP has a more defined legal status, significantly reducing idiosyncratic risk.

The weakness we see in the chart is purely cyclical and market-driven. It does not reflect a deterioration in ODL adoption, institutional partnerships, or network functionality. It is simply supply and demand mechanics doing their job.

Next Critical Levels: Where to Watch Now

For technical traders, XRP is currently forming what could be described as a “descending wedge”—a compression where the trading range narrows progressively toward an inevitable breakout point. Technically, the asset is positioned below its 50- and 100-day moving averages, suggesting that short-term momentum remains negative.

However, resting averages characteristic of the current market, combined with reduced volume, often precede sharp movements. The critical question is: in which direction?

If support at $1.77 holds and volume begins to expand upward, we are facing a classic silent accumulation scenario. Institutional investors waiting and small accumulators at these levels could be positioning for the next bullish cycle.

Alternatively, if bears manage to decisively break below $1.77, a move toward $1.60 or even $1.50 becomes likely. This risk should be considered by those with leveraged positions.

The Pause Before Action

XRP is in a state of technical and market resting averages: an unstable equilibrium where the price has ceded significant ground but the protocol’s fundamentals remain intact. ETF withdrawals are market realities that must be processed, not existential threats to the project.

The real question for investors is whether this decline presents an accumulation opportunity for those who believe in Ripple’s value proposition, or if it is simply the start of a deeper structural correction. The next four to eight weeks will reveal whether the market finds a bottom at $1.77 or extends the sell-off to lower levels. One thing is certain: with XRP in resting averages, action is coming.