XRP Breakout: How Smaller Investors Absorb the Selling Pressure

Recent market dynamics around XRP reveal an interesting pattern emerging from on-chain activity. A significant wave of selling from major token holders over the past month has flooded the market with approximately 400 million XRP tokens valued near $800 million. Rather than creating panic-induced crashes, this supply influx has been strategically absorbed by smaller and mid-tier investors, according to data analysis from NS3.AI. This absorption mechanism has proven crucial in stabilizing price action and preventing an accelerated downside spiral.

Technical Setup Signals Upside Potential

From a technical perspective, XRP has recently broken through a descending wedge pattern—a formation that typically precedes bullish reversals. This breakout is pointing toward a potential price rally of approximately 11.7%, with the next major resistance level established around $2.10. Currently trading at $1.49 (as of February 14, 2026), the token still maintains meaningful room to run if buyers continue to absorb supply at these discounted levels. However, investors should remain cautious as the asset could reverse sharply if it surrenders critical support zones beneath current trading ranges.

Chain Data Shows Supply Being Absorbed at Lower Levels

The ability of smaller market participants to absorb the massive selloff reflects underlying strength in the market structure. Long-term holders have not capitulated despite the selling pressure, and they continue accumulating tokens at these price points. This behavior demonstrates persistent confidence in XRP’s long-term prospects. Top 10 address concentration sits at 38.25%, while top 100 addresses hold 67.56% of all XRP, indicating substantial institutional and whale involvement that continues to support price floors.

Sentiment Remains Bullish Despite Near-Term Volatility

The convergence of accumulated buying pressure from patient investors and the successful absorption of whale selling creates a foundation for potential upside exploration. While vulnerability exists at lower support levels, the current market structure suggests that the aggressive selling phase may be giving way to a more balanced accumulation phase, setting the stage for renewed momentum toward those higher technical targets.