Larry David Tackles XRP: 2 Million Transactions and Trump’s Tariffs Spark Panic Sell-off 😱

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So, Ripple (XRP) is like my friend who’s always a few steps behind. It stabilized around the $2.20 level on Thursday, Feb. 27, but on-chain data suggests that the recent market dip was accompanied by clusters of high-volume sell-offs. Like, what are these people thinking? This pattern could significantly slow down the next rebound phase at key price levels, raising concerns among investors about XRP’s near-term trajectory. 🤔

XRP price action has leaned overwhelmingly bearish since the start of February, despite several bullish developments, including the SEC dropping charges against Ripple. I mean, the SEC dropping charges is like when I finally get a parking spot, but then I realize it’s in front of a fire hydrant. 🚒

This marked the end of the regulatory onslaught filed against the company under the outgoing Gary Gensler-led regime. Additionally, XRP had gained momentum when the SEC acknowledged Grayscale’s spot XRP ETF filing, fueling optimism for broader institutional adoption. But, you know, optimism in the crypto world is like finding a quarter in your pocket—exciting, but it never lasts. 💸

However, the market turned sharply negative following a hotter-than-expected inflation CPI report on Feb. 13, the $1.4 billion exploit on Bybit, and former President Donald Trump’s announcement of tariffs on North American neighbors Canada and Mexico. Trump’s tariffs are like when I accidentally put salt in the sugar bowl—everything just gets a little too bitter. 🤢

These macroeconomic factors compounded the bearish momentum, dragging XRP price to a three-week low of $2.15 on Feb. 26. It’s like when I try to park my car in a spot that’s just a little too small—frustrating and inevitable. 🚗

Despite these challenges, bulls made a strong push to reclaim the $2.20 level at press time. Zooming out, XRP has now reached 20% losses since the start of February 2025. However, the sell-off appears to have subsided, with declining volume on Thursday suggesting that short-term sellers may be running out of steam. If demand continues to strengthen, Ripple price could consolidate above this level before making another attempt at higher resistance zones. It’s like when I finally get the hang of a new joke, but then I realize it’s not as funny as I thought. 😅

Rebound prospects at risk as sellers execute 2 million transactions in high-volume sell-offs

XRP staged a mild 2% gain in the early hours of Feb. 27, briefly reclaiming the $2.20 level. However, market sentiment remains fragile as the U.S. tariffs on Mexican and Canadian imports are set to take effect on March 1, casting doubt on the prospects of a sustained recovery. It’s like when I try to hold a grudge, but I can’t help but laugh at the irony. 🤣

On-chain data further highlights that high-volume sell-off clusters formed earlier this week could hinder weak rebound attempts. CryptoQuant’s Daily Transactions chart, which tracks the number of unique transactions executed on the XRP Ledger since the start of February, reflects a surge in trading activity tied to key market events. It’s like when I try to keep track of my expenses, but I end up buying more coffee. ☕

The chart shows that XRP traders executed 2 million transactions on Feb. 25, coinciding with the market’s reaction to Trump’s latest tariff announcement. This represents a three-week high in transaction volume, with the last comparable spike occurring on Feb. 3, when Deepseek’s breakout triggered a U.S. tech stock sell-off that spilled into the crypto markets. It’s like when I try to avoid a bad investment, but I end up buying more lottery tickets. 🎟️

Historically, when sharp price downswings align with high transaction volume, it indicates that a significant number of traders executed sell orders. As a result, when XRP approaches these key price levels during the next rebound phase, those who previously bought in at those levels may opt to exit at break-even points, creating additional resistance. It’s like when I try to stick to a diet, but I end up eating more cookies. 🍪

For context, XRP opened at $2.70 on Feb. 3 before declining sharply and later opened at $2.32 on Feb. 25. Given the volume spikes observed at these points, XRP price is unlikely to break above these levels without a major bullish catalyst that triggers a rapid buying frenzy. Without such a catalyst, XRP’s next attempt to breach resistance could falter, keeping the price trapped in a tight consolidation range. It’s like when I try to plan a perfect day, but everything goes wrong. 😭

XRP price forecast: $2.32 resistance could cap recovery efforts

XRP price struggles to gain upside momentum after a steep five-day decline that erased nearly 25% of its value, sinking to $2.16. The Bollinger Bands indicate increased volatility, with the price currently testing the lower band, a sign of oversold conditions. While this could attract dip buyers, the lack of strong volume inflows suggests bulls face resistance in staging a sustainable recovery. It’s like when I try to save money, but I end up buying more snacks. 🍟

The 50-day moving average at $2.51 remains well above current levels, reinforcing the bearish control. XRP must reclaim this level to restore bullish confidence. Meanwhile, the Bull-Bear Power (BBP) indicator at -0.50 highlights persistent bearish pressure, a key signal that sellers remain dominant. Until this turns positive, upside attempts are likely to fizzle out. It’s like when I try to make a good impression, but I end up saying the wrong thing. 😬

A decisive close below $2.16 could open the door for a deeper correction, with the next major support near $2.00. Conversely, reclaiming $2.32—where the last rebound attempt failed—could signal early recovery signs. However, given the lack of bullish momentum and heavy sell-side volume, the path of least resistance remains downward unless a strong catalyst emerges. It’s like when I try to fix a problem, but I end up making it worse. 😩

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2025-02-27 05:57