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XRP traded around $1.33 on February 24, as traders reacted to weaker risk appetite and uncertainty around US crypto policy. The decline forced XRP back under $1.40, which many traders treated as a key near-term level.
The broader crypto market also softened, and the risk-off mood added pressure across major tokens. Broader crypto sentiment stayed fragile, and many traders reduced exposure to higher-volatility tokens. As a result, XRP continued to react quickly to policy signals and risk headlines.
XRP slipped to $1.33 after it lost the $1.40 level. The break left XRP closer to the next watched area near $1.30. Traders often treat such levels as risk markers during fast declines.
Price action showed steady selling across the session window. Short bounces faded quickly, and sellers defended lower highs. This pattern kept momentum tilted lower on short timeframes.
Traders now watch whether XRP stabilizes above $1.30. A clean move below $1.30 can increase focus on $1.25 and $1.20. A rebound above $1.40 can reopen the $1.50 area as resistance.
On-chain data showed a sharp jump in realized losses for XRP holders. Santiment said XRP recorded its largest realized-loss spike since 2022. Realized losses rise when investors sell below their average cost.
Santiment linked realized-loss spikes with fear-driven exits and forced selling. The firm explained that panic selling can lock in losses across many wallets. Traders watch this metric because it can mark exhaustion in selling waves.
Santiment also referenced a previous weekly extreme of $1.93 billion in 2022. It noted that XRP later gained about 114% over the next eight months after that episode. Traders still require price confirmation before treating history as a signal.
Exchange-flow data showed heavy whale activity during the downturn. Large holders moved more than 31 million XRP into Binance in a single day. The flow breakdown pointed to bigger wallets leading the deposits.
Traders often treat large exchange inflows as a supply warning. Deposits do not confirm immediate selling, but they increase liquid inventory. During weak momentum, that extra supply can cap rebounds.
Meanwhile, Polymarket showed a sharp reset in expectations for the Clarity Act. The market displayed 53% implied odds for the bill to become law in 2026, after a drop from higher levels earlier in the week. Traders often treat that swing as a live measure of near-term regulatory clarity.
The Clarity Act would set clearer lines between federal agencies on how they supervise digital assets. When Polymarket odds drop, traders often assume the process will take longer, and rules may stay unclear. In a soft market, that uncertainty can weigh on XRP traders' positioning.
Negotiators have also focused on stablecoin rewards and whether issuers can pay returns tied to holdings. Some proposals would restrict rewards on idle balances while still allowing incentives based on usage or activity. The dispute has slowed the talks and left the final bill language less certain.
Also Read: XRP Ledger Launches Members-Only Bank Exchange: XRP Still Below $1.50
