XRP's Market Decline Contrasts With Network Advancements

XRP price fell sharply to $1.30, liquidating $12.5M in longs. Meanwhile, the XRP Ledger activated its Permissioned DEX upgrade for institutions, and major banks like Citi prepare custody services.

The XRP token is experiencing a significant market downturn, even as its underlying technology records substantial progress. In a sharp correction, the asset's price dropped approximately 10%, falling from $1.42 to briefly touch $1.30. This move represented a decisive break below the crucial $1.36 support level. Accompanying the price slide was a surge in trading activity, with volume exploding by more than 170% compared to its 30-day average.

Liquidation Pressure Hits Bullish Traders

The market correction triggered a cascade of liquidations, overwhelmingly affecting traders holding long positions. Over a 24-hour period, total liquidations reached $13.86 million. A staggering $12.56 million of this sum came from long positions being forcibly closed. This created a liquidation imbalance of 1,058% against bullish traders. XRP's decline occurred within a broader market retreat, with Bitcoin falling below $65,000 and putting pressure on the wider digital asset sector.

Market technicians now note that the former support zone between $1.36 and $1.37 has flipped to become a resistance area. Analysts are closely watching the $1.30 level as the next key support.

Institutional Infrastructure Strengthens Amid Sell-Off

Despite the negative price action, development on the XRP Ledger continues to advance. On February 18, the network successfully activated the XLS-81 upgrade. This introduced a "Permissioned DEX" feature, designed to allow regulated entities like banks to operate their own decentralized exchanges with controlled participant access. The upgrade natively integrates Know-Your-Customer (KYC) and Anti-Money Laundering (AML) standards into the infrastructure, a targeted step toward broader institutional adoption.

Furthermore, the network demonstrated its resilience in late February. A critical vulnerability within a planned "Batch" amendment was identified by a researcher and Cantina AI's Apex solution. Network validators prevented the flawed implementation from going live through an emergency release.

Building Bridges to Traditional Finance

Separate from the price chart, the ecosystem for institutional involvement is expanding. BNY Mellon is serving as custodian for Ripple's RLUSD stablecoin. Following its acquisition of Metaco, Citi has integrated XRP ahead of a planned custody launch in 2026. Investment products tied to XRP have seen significant inflows, with XRP ETFs collectively gathering $1.24 billion. Daily inflows into these products range between $1.2 million and $4.5 million.

On-chain data suggests accumulation may be ongoing despite the price drop. The Taker Buy-Sell Ratio has remained between 1.05 and 1.12, an indicator that larger addresses continue to show net buying interest. Additionally, the deadline for stablecoin negotiations at the White House concludes on March 1. The potential "Digital Asset Market Clarity Act," anticipated for 2026, could provide much-needed regulatory clarity for the asset class.