BEARISH 📉 : XRP sees heavy sell-off despite $45M ETF inflows

The recent market downturn saw XRP experience significant selling pressure, with prices dropping sharply in early February. This decline forced many sellers out amid high trading volumes.

Key Points:

Coinbase recorded a surge in XRP trading, with 666 million tokens exchanged on February 5, indicating panic selling.
This volume was double the October drop but below February's previous peak of 975 million tokens traded.
High trading volumes during declines can signal capitulation, where weak hands are exhausted.
Analyst Blockchain Backer previously indicated the January price increase as a short rebound, supported by technical indicators MACD and RSI showing weakness.
XRP experienced $45 million ETF inflows amidst the market crash, contrasting with outflows from BTC, ETH, and SOL.
Institutional buying during sell-offs can provide demand stability, although it does not eliminate price risks.
The recent drop is comparable to past crypto capitulations, yet each market cycle is unique, suggesting potential for further declines before recovery.
The market shows institutional interest, which may indicate that the worst of the decline is over, but the recovery timeline remains uncertain.

Investors should monitor volume levels, key support bands, and continued buy-side flows for signs of a potential trend change.