XRP prices have been slow to recover in recent days, raising concerns about the possibility of another bear market in 2021-2022.
While weakness remains, recent developments involving Ripple CEO Brad Garlinghouse could change sentiment.
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XRP may not be able to imitate the past
Brad Garlinghouse has joined the Commodity Futures Trading Commission’s Innovation Advisory Committee. This appointment marks a significant milestone for Ripple and the broader XRP ecosystem. The same regulatory environment that has challenged Ripple for nearly five years is now seeking input from the industry.
For XRP supporters, this signals that regulatory normalization is on the way. Engagement with the CFTC could give Ripple more credibility in US policy discussions. Constructive dialogue could reduce uncertainty and alleviate long-term legal overhangs that have weighed on the XRP price to date.
Recently realized profit and loss data shows a surge in sales. Some observers are comparing this move to early signals seen before the 2022 bear market. But in 2022, sustained distribution lasted nearly four months. The current sell-off lacks such duration and intensity, making a long-term decline in XRP less likely.
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Sales exist, but it’s not a concern
Exchange balance data suggests that selling pressure continues to be measured. Approximately 100 million XRP has moved onto exchanges in the past 10 days, with a value of $130 million. While noteworthy, this scale does not indicate widespread panic.
In November 2025, 130 million XRP was sold within 72 hours. The episode reflected a growing sense of urgency among holders. Compared to that phenomenon, the current flow appears controlled and less aggressive.
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Moderate selling and positive regulatory developments could stabilize sentiment. If distribution does not accelerate, XRP may absorb supply without significant downward price expansion. Market participants are closely monitoring confirmations from on-chain indicators.
XRP has room for recovery
The liquidation heatmap shows that immediate obstacles to recovery are limited. XRP faces the next major resistance between $1.78 and $1.80. This zone represents a potential profit-taking area rather than an immediate structural ceiling.
There are no dense clusters of liquidations below current levels, reducing the short-term risk of cascading declines. If momentum improves, XRP has room to advance before encountering significant overhead supply. This technical flexibility supports a cautious and constructive outlook.
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XRP price needs to recover
XRP is trading at $1.35, below the support level of $1.36. The next key support is located near $1.27, coinciding with the 23.6% Fibonacci retracement. Despite recent weakness, broader factors suggest a balanced risk profile.
Garlinghouse’s appointment to the CFTC could boost investor confidence. A recovery rally could unfold if XRP regains $1.51. Sustained strength above that threshold could send the price heading into the supply zone above $1.76.
However, a break below $1.27 will see a decisive shift in momentum. If the support fails, panic selling may intensify. A fall towards $1.11 would invalidate the bullish argument and extend the current correction phase.
