Ripple (XRP) price held firmly above the $2.65 mark on Monday, as bulls warded off bearish tailwinds from short-term traders who took profits when the US SEC acknowledged an XRP spot ETF on Feb. 13.
Ripple (XRP) Tumbles 6% in 3-Days as Traders Take Profits on ETF Hype
Ripple (XRP) price came under noticeable selling pressure over the weekend, as investors capitalized on the recent buzz surrounding a potential XRP spot ETF to lock in profits. The week began on a high note, with XRP surging by 22% between Feb. 10 and Feb. 14. Much of this upside momentum stemmed from renewed optimism that the US SEC’s acknowledgment of the Grayscale’s Dogecoin and XRP spot ETF filings could lead to an influx of institutional demand.
However, the gains were short-lived. Hours after the official confirmation surfaced, XRP’s price retraced sharply, reflecting a classic “sell-the-news” scenario often observed in cryptocurrency markets.
The Ripple price action chart above highlights how quickly market sentiment can shift when major announcements fail to deliver immediate follow-through. Having reached a peak of $2.80 on Friday, XRP shed roughly 7% to trade at $2.60 by Monday morning. This rapid reversal indicates that, despite the bullish catalyst of the SEC acknowledgment, many short-term traders deemed the move overextended and chose to exit their positions.
A look at the chart reveals three consecutive losing sessions since the ETF acknowledgment. This pullback underscores the delicate balance between bullish optimism over potential regulatory breakthroughs and the reality of profit-taking by short-term traders. As is often the case in crypto markets, a single catalyst can spark both surges and sell-offs in quick succession, leaving the long-term direction in question.
Still, XRP’s ability to remain above the $2.60–$2.65 support zone has provided a degree of optimism. While the market has witnessed a steady outflow of speculative capital, the robust bid at these price levels suggests that buyers remain prepared to defend XRP against further declines. Whether this support will hold if the broader market sentiment sours remains to be seen, but for now, it has acted as a buffer against a steeper correction.
The price reversal in recent days may also reflect a typical pattern in cryptocurrency trading, where investors buy the rumor (or hype) and sell the news. Once the acknowledgment of the ETF filing was made public, many short-term speculators who had been anticipating a more substantial surge found an opportunity to take profits. As a result, the market is now in a consolidation phase, with XRP looking to establish a new equilibrium before the next major move.
Speculative Demand Plunges into Negative Values as Markets Await Next Bullish Catalyst
Even as XRP has lost 7% of its value since the SEC acknowledged the XRP spot ETF, the derivatives market offers a deeper glimpse into the evolving sentiment. Data from CryptoQuant’s Taker Buy/Sell ratio reveals that bearish momentum could persist unless a fresh catalyst materializes. This ratio measures whether the most recently executed trades were initiated by buyers or sellers, providing real-time insight into the market’s appetite for risk.
According to the chart below, XRP’s Taker Buy/Sell ratio dropped into negative territory at 0.93 on Feb. 17, an 8% decline from the 1.02 reading recorded on Feb. 13. A negative Taker Buy/Sell ratio implies that sellers are more aggressive than buyers, often indicating waning speculative demand.
In other words, instead of stepping in to buy the dip, traders appear to be positioning for further downside or closing out existing positions in anticipation of more significant volatility ahead.
Such a drop in speculative demand can be concerning for a market reliant on momentum-driven inflows. Historically, when Taker Buy/Sell ratios fall below 1.0 for an extended period, it suggests that the path of least resistance may be to the downside. This is particularly relevant now, given XRP’s proximity to the $2.60 support level. If that level fails, the psychological $2.50 mark could be tested next, potentially triggering a wave of sell orders from traders seeking to minimize losses.
Still, the situation is not entirely bearish. A quick recovery in the Taker Buy/Sell ratio—coupled with a renewed wave of buying interest—could reignite upward momentum, especially if broader market sentiment turns positive or additional regulatory progress unfolds. Until then, XRP appears to be in a wait-and-see phase, with its near-term fate hinging on whether buyers can outmatch the current wave of speculative selling.
XRP Price Forecast: Bulls Struggle to Hold Key Support at $2.59 Amid Weak Momentum
Ripple’s XRP trades at $2.639, down 0.79% on the day, as price action battles to maintain footing above the 50-day EMA at $2.5889. The coin remains trapped between the 50-day EMA and the 200-day EMA at $1.7337, forming a precarious range where a decisive break could determine the next trend.
A short-term bullish setup emerged with a 21.95% gain in five days, but sellers quickly erased momentum, leading to a 6.87% retracement in three days with high selling volume. The 100-day EMA at $2.2536 is a crucial support level; a breakdown below could see XRP testing the 200-day EMA at $1.7337. However, a strong recovery above $2.6453, the 20-day EMA, could re-ignite bullish sentiment.
Volume bars reveal declining bullish activity, reinforcing concerns about a sustained rally. If bulls fail to reclaim $2.65, XRP risks slipping toward $2.25. A breakout above $2.65, however, could see renewed strength toward $3.00. Until a definitive move occurs, traders remain cautious.
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