In a dramatic shift for the cryptocurrency markets, XRP has surged back above $1.48, marking one of the strongest mid-February rebounds in recent years. After dipping below $1.10 in the first week of the month a drop of more than 25% from January peaks XRP’s recovery highlights growing institutional interest and shifting market dynamics that are reshaping investor sentiment.
Traders who were bracing for a continued downturn now see the reclaimed $1.48 level as a potential launch point for sustained gains. According to trading volume data, XRP’s daily traded amount has jumped nearly 40% over the past seven days, signaling heightened activity among both retail and professional participants.
ETF Inflows Create New Support Floor
One of the biggest catalysts behind XRP’s rebound has been the influx of capital into spot XRP exchange-traded funds (ETFs). These products, launched late in 2025, have amassed more than $1.5 billion in assets under management (AUM) in under three months a striking figure for a single digital asset ETF outside of Bitcoin and Ethereum.
Institutional traders have been steadily increasing allocations to XRP ETFs, with average daily inflows peaking at $55 million in the past fortnight. This level of demand is validating XRP’s narrative as a “next-tier institutional digital asset,” and many analysts believe these flows are creating a new price floor for the token.
This surge in institutional buying has also influenced market positioning. Net long positions among professional traders have been climbing, with futures open interest up by roughly 28% since early February, indicating that more capital is being committed to sustained upward pricing.
Breaking the “February Curse”
Historically, XRP has been notorious for what traders call the “February slump,” where seasonal weakness and market volatility push prices lower during the second calendar month. Over the past decade, XRP logged monthly declines in February 7 out of 10 years, often lagging behind broader crypto performance.
This year’s price action suggests that trend may finally be breaking. Data shows that this February has seen one of the highest bounce-back rates from local lows among major altcoins. While Bitcoin and Ethereum have both posted recoveries, XRP’s rebound rate of 34% from its monthly low outpaces many peers and underscores its growing resilience.
Macro Forces and Market Sentiment
XRP’s resurgence hasn’t occurred in a vacuum. Macro conditions particularly shifting U.S. economic indicators and risk asset appetite have influenced crypto markets overall. Mid-February saw volatility in equities and bonds, which typically correlates with heightened crypto price swings.
Despite these cross-asset pressures, XRP’s volatility index has actually contracted by approximately 15% over the past 10 days, suggesting reduced downside risk and more stable trading ranges. Traders interpret this compression as a bullish signal when combined with rising volume and institutional flows.
Funding Rates Signal Position Shifts
Another analytical indicator showing the changing market structure is XRP’s funding rate on derivatives platforms. After reaching negative extremes earlier this month where short sellers were paid to hold bearish positions funding rates have now moved into neutral territory.
This shift is important because negative funding when extreme often precedes price reversals as short squeezes unwind. With funding rates balancing out, XRP is now attracting fresh long positions instead of being dominated by bearish bets.
Developers and Network Activity Strengthen Narrative
Beyond price and institutional demand, ecosystem data paints an encouraging picture. On-chain metrics show that active addresses interacting with the XRP Ledger are up by over 22% month-over-month, indicating increased adoption outside just trading.
Real-world use cases such as tokenized assets and cross-border payment integrations remain strong talking points among institutional clients and developers. This suggests that interest in XRP isn’t purely speculative but tied to real utility growth.
What’s Next for XRP Price Action?
Looking ahead, market watchers say the key for XRP will be holding above the $1.45-$1.50 support zone. Should that range become a reliable floor, technical momentum could push the asset toward $1.80 and beyond in the coming weeks.
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