$XRP Prices often demand resilience before growth, and February 2026 has become a pivotal test for XRP investors. Amid sharp price fluctuations and overall cryptocurrency volatility, many speculative traders were forced to exit their positions, leaving stronger, long-term holders in control. This cleansing moment prompted analysts to explore whether the recent exit signals an upcoming recovery.

Crypto analyst STEPH IS CRYPTO, a widely followed voice on X, highlighted this dynamic in a recent post on X. Steph pointed to on-chain indicators suggesting that XRP has just "shaken out all the weak hands," a phenomenon where over-leveraged and short-term holders exit, leaving the market primed for accumulation.
Steph emphasized that while capitulation may look alarming, it often marks a turning point, setting the stage for a renewed rally.

👉Weak hands disappear
XRP fell approximately 30% in February, testing lows around $1.11, as broader crypto markets reacted to macroeconomic uncertainty and heavy leverage liquidations. Steph noted that mass sell-offs, particularly in derivatives markets, forced overextended traders to exit, effectively reducing speculative noise.
On-chain analyses, including the NUPL chart (Net Unrealized Profit/Loss) from Glassnode, confirmed widespread capitulation plunging into negative territory — a sign of market bottoming. Steph mentioned that forced liquidations of about $775 million XRP with leverage during the “Black Monday” event further cleared weak positions, leaving stronger holders in control of the market.
👉Institutional support amid volatility
Despite intense short-term pressure, XRP attracted significant institutional attention. Steph highlighted that $1.2 billion in inflows into spot ETFs entered XRP-based products during the same period, signaling that long-term investors are buying the dip.
This institutional demand sharply contrasts with the panic selling driven by retail investors and underscores the market’s underlying resilience. Analysts see this influx as a critical factor that could help stabilize XRP prices and lay the groundwork for the next bullish cycle.
👉What does this mean for XRP’s recovery
A combination of exhausted weak hands and ongoing institutional accumulation creates an environment conducive to a renewed rally. Reduced speculative pressure may lead to fewer sharp liquidations, while stable inflows support long-term price stability.
Steph argued that these conditions often precede strong upward moves, noting that XRP is now in a healthier, more balanced market structure than before the February dip.
Essentially, the recent correction could serve as a pivotal moment for XRP. Cleansing short-term traders and attracting patient capital, the market has laid the foundation for potential upside. As Steph summarized, data and signals from the blockchain indicate that this is not just sentiment — it’s "time to go up."