XRP’s 40% Crash Wasn’t the End-Why $1.70 Is Still Within Reach!

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In a truly “surprising” twist of fate, XRP has plummeted nearly 40% since January 5, diving from $2.35 to a pitiful $1.40. Now, one would expect mass panic, endless selling, and perhaps a full-on market apocalypse. But no, something far more interesting unfolded.

Instead of spiraling further into despair, one group of holders-those with a spine-remained remarkably unfazed. Meanwhile, a less adventurous crowd quietly shuffled off into the night. Strangely, leverage stayed balanced and institutional money didn’t flee. This unlikely confluence of events might have actually strengthened XRP’s shaky foundation. Who would’ve thought?

The “Weak Hands” Fled – And That’s a Good Thing!

As XRP bled, something remarkable happened-speculative holders, the traders who swoop in for a quick buck, exited stage left. These are the folks who usually buy and sell with all the grace of a cat chasing a laser pointer. The HODL Waves metric, which tracks who’s holding what and for how long, showed a dramatic exodus. On February 8, these traders held 2.29% of the supply. By February 26? That number had plunged to 0.579%, marking a 74.7% drop. Price falling? Yes. But these quick-flippers? Gone.

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And here’s the kicker: the exit of these speculative traders is crucial. Their exit removes the kind of instability that drives markets into chaos. It’s like clearing out the trash so the room doesn’t smell. Suddenly, XRP has fewer sources of volatile selling pressure. The “weak hands” are gone, reducing the risk of future panic-driven crashes. But wait-removing the weak holders doesn’t guarantee strength. It’s time for the real test: did the strong holders stick around?

The True HODLers Stuck Around-Even as XRP Took a Nosedive

While XRP was busy doing its best impression of a falling knife, the long-term holders took a deep breath and carried on. It was almost as if they were holding a treasure chest, unbothered by the storm.

The Hodler Net Position Change metric, which measures the actions of those who hold for at least 155 days, painted a picture of utter defiance. On January 5, XRP was priced at $2.35, and these loyal holders had accumulated around 47.3 million XRP. By February 26, after a 40% fall to $1.40, their holdings had shot up to about 145.45 million XRP-a staggering 200% increase. They didn’t flinch.

In other words, the most patient investors were loading up as the price plummeted. Panic? Never heard of it.

Even more impressive: since mid-February, their holdings have remained rock solid despite XRP’s wild price swings. The message is clear: these investors aren’t seeing the crash as a reason to sell, but rather as an opportunity. They’re positioning for the eventual rise. A stronger base, indeed.

XRP’s Leverage Situation-No One’s Gonna Get Squeezed

Excessive leverage is often the culprit behind crypto crashes. When too many traders are all-in, the market becomes a house of cards ready to collapse at the first gust of wind. Ethereum is a prime example-its leverage ratio is about as unstable as a toddler on roller skates.

But XRP? It’s looking a lot more sensible.

On Binance, XRP’s leverage is almost perfectly balanced, with $74.93 million in long positions and $69.14 million in short positions. No crazy overleveraged whales here to wreck the price with forced liquidations. The result? A market that moves more on actual demand than on the whims of some overzealous trader.

Balance in the system doesn’t just keep things stable-it keeps the drama to a minimum. The price moves based on real demand, not on someone’s panic-triggered liquidation. Stability is the new sexy.

Institutional Money Keeps Flowing-Are We Looking at $1.70?

While other cryptocurrencies suffered from weak institutional interest in February, XRP remained a steady draw for institutional players. No massive sell-offs, no outflows. Institutional flows didn’t blink. These guys aren’t swayed by short-term volatility. They’re in it for the long haul, helping to keep the market from falling off a cliff.

When you combine strong holders, balanced leverage, and steady institutional money, you’ve got a foundation for something a bit more solid. Oh, and there’s also a lovely cup-and-handle pattern forming on the charts, which is a sign that XRP might just be ready to break out.

Now, here’s the key: if XRP stays above $1.38, the bullish pattern stays alive. Drop below that, and the bulls may pack up their bags. But if XRP can climb above $1.42 and break the $1.52 mark, we’re talking about a move toward $1.70. Perhaps even $1.86, if everything aligns perfectly.

In the end, maybe the crash wasn’t the end after all. It could very well be the beginning of a stronger, more resilient XRP.

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2026-02-27 23:26