XRP Stabilizes Following Recent Surge – Technical Analysis for February 20, 2025

After a spectacular rise, the price of XRP has stabilized below its ATH. Find Elyfe’s analysis to decipher the technical outlook for XRP.

Current Situation of XRP Price

After experiencing a significant expansion, the price of XRP reached $2.90, its highest level since January 2018. It was at this level that the cryptocurrency underwent an initial consolidation, eventually broken upward, allowing XRP to reach a new high of $3.40. Unfortunately, the overall decline in the crypto market prevented the cryptocurrency from reaching its ATH, which is slightly above, at $3.55.

Indeed, XRP has undergone a correction of 46%, bringing its price down to around $1.80. Although this decline is concerning, the price quickly returned above the $2 threshold. It then stabilized at the first pivot support, located at $2.27, before bouncing back up again.

At the time of writing these lines, XRP is trading around $2.70. Although the cryptocurrency is trading below its monthly pivot point and below its vwap level, aligned with its 50-day moving average, it is worth noting that the short-term trend seems to be turning upward, moving above a significant value area. Regarding medium and long-term trends, they remain bullish.

On the XRP dynamics side, we observe a temporary weakening before a rebound, indicating an encouraging recovery. Nevertheless, a bearish divergence is visible between the oscillators and the price of XRP, signaling decreasing momentum despite the price progression. This type of signal is often a precursor to a bearish reversal unless genuine buyer interest manifests.

Graph of XRP/USD Daily

The current technical analysis was conducted in collaboration with Elyfe , an investor and advocate for the cryptocurrency market.

Focus on XRP Derivatives (XRP/USDT)

After observing a simultaneous decline in open interest and the underlying price, we notice an exit of positions in the market. However, for the past two weeks, this trend seems to have stabilized, suggesting a market consolidation. This phenomenon can be interpreted as a sign that market participants are awaiting a catalyst before taking more active positions.

Although signs of stabilization are emerging, the CVD continues to reflect a persistent bearish trend, indicating a predominance of sell orders, but with pressure that is gradually easing. This dynamic suggests a slowdown in selling aggression, which could herald a waning of the bearish movement. A continued stabilization or even a reversal of the CVD could signal a rebalancing between buyers and sellers, or even a trend change.

Since the last decline of XRP, liquidations have remained limited on both sides of the market, with no significant movements for either buyers or sellers. This situation reflects a stable market, contained volatility, and cautious risk management. However, this balance remains temporary. A resurgence of volatility is likely, particularly in the event of a sudden increase in volumes or the emergence of an external catalyst.

XRP open interest / Liquidations / CVD & funding rates

The liquidation heatmap for XRP/USDT reveals that the cryptocurrency bounced back after coming into contact with the liquidation zone between $1.80 and $1.90, illustrating notable demand at that price level.

Currently, the price of XRP is situated below a liquidation zone ranging from $2.80 to $2.90. Higher up, there is a more significant liquidation area above $3.20, with a more pronounced level at $3.44.

Below the current price, we can note a liquidation zone at $2.30. Further down, a subtle liquidation zone starts at $1.74 and extends to $1.41.

The price approaching these levels could trigger a massive order execution, thus increasing the risk of heightened volatility for the cryptocurrency. These zones thus represent a crucial point of interest for investors.

XRP Liquidation Heatmap

Forecasts for XRP Price

• If the price of XRP remains above $2.27, a breach of $3.15 could be considered. The next resistance to watch, in case of a continued upward movement, would be the last peak identified at $3.40. Beyond that, XRP’s ATH, situated at $3.55, would represent a key target, accounting for an increase of over 31%.

• On the other hand, if XRP fails to maintain above $2.27, a return to $1.80 could be considered. In case of continued bearish movement, the next support to consider would be around $1.43, representing a decline of about 47%.

Conclusion

XRP shows signs of recovery after a marked correction, but some indicators suggest potential fragility in the bullish movement. The trend remains generally positive, but a genuine return of buyer interest will be crucial to confirm the continuation of appreciation. In this context, it will be essential to closely monitor price reactions at strategic levels to confirm or adjust current forecasts.

Finally, let us remind you that these analyses are based solely on technical criteria, and the price of cryptocurrencies can evolve rapidly based on other more fundamental factors.