Key Takeaways:
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The Support Battle: XRP successfully broke out of a falling wedge earlier this week but is now retesting that breakout level as support. If the $1.40 - $1.43 zone holds, analysts project a recovery toward the $1.71 resistance. A break below, however, could expose the asset to the $1.25 yearly low.
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Whale Conviction: Despite the price drop, Chaikin Money Flow (CMF) shows bullish divergence. While retail investors are transferring XRP to exchanges to reduce risk, institutional "whales" are doing the opposite—removing supply from the market into cold storage.
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Regulatory & Institutional Tailwinds: The dip is occurring despite positive fundamental news, including Ripple's expanding institutional roadmap in Asia and the Middle East. Many traders view this as a "shakeout" before a potential rally toward the 2026 target of $2.40 - $2.80.
XRP Dips -5.7% into the "Undervalued" Zone: Is This the Best Time to Buy?
XRP fell 5.7%, currently trading between $1.41 and $1.47. While the broader market remains defensive, key technical indicators suggest XRP has entered a prime "buy the dip" range. Analysts point to the MVRV-Z Score entering negative territory as a signal that the asset is fundamentally undervalued.
Why XRP is Considered "Undervalued" at $1.41
Technical analysis for today, February 20, 2026, reveals that despite the price drop, long-term indicators are turning bullish.
1. MVRV-Z Score Hits Negative Levels
The MVRV-Z Score has plunged below zero. Historically, when XRP's market value drops significantly below its "realized" value (the price at which coins last moved), it marks a local price bottom. For traders looking for an undervalued crypto entry, this is a major green flag.
2. Whale Accumulation vs. Retail Fear
On-chain data shows that while retail traders are panic-selling, "whales" holding over 1 billion XRP have increased their positions by 3% this week. This "smart money" accumulation often precedes a trend reversal.
Technical Support Levels to Watch Today
XRP is currently testing a structural breakout zone. Staying above these levels is critical for a recovery toward the $1.71 resistance.
Key Price Support: $1.40 - $1.43
This range aligns with the 200-day Exponential Moving Average (EMA). As long as XRP closes the day above $1.40, the long-term bullish structure remains intact.
Resistance and Targets: $1.71 and $2.40
If the "undervalued" signal triggers a rebound, the first major hurdle is $1.71. A break above this level could clear the path back toward the 2026 high of $2.40.
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Major Asset Moves: XRP Focus
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| Metric | Value (Feb 20, 2026) | Trend | Significance |
| XRP Price | $1.41 - $1.47 | -5.70% | Testing critical support near the 200-day EMA ($1.43). |
| RSI (14-Day) | 32 - 42 | Bearish | Approaching "Oversold" levels (under 30). |
| MVRV-Z Score | Negative | Undervalued | Historically precedes sustained price recoveries. |
| Whale Activity | Increasing | Accumulation | Large holders are buying the dip despite retail fear. |
Industry Highlight: The MVRV-Z Score Signal
The MVRV-Z Score is a market value to realized value ratio used to identify extremes in investor behavior. When it enters the negative zone (as it did today), it indicates that the current market cap is significantly lower than the price at which the coins last moved. For XRP, this "undervalued" status has historically been a reliable indicator of a local bottom, signaling that the sell-off may be reaching exhaustion.
FAQs
What are the key XRP support and resistance levels to watch?
The most critical support level is the $1.40 – $1.43 range, which aligns with the 200-day EMA. If XRP maintains this floor, analysts project a recovery rally toward the immediate resistance at $1.71. A successful breakout above $1.71 could clear the path toward the 2026 target of $2.40.
Why is XRP falling while whales are accumulating?
This is a classic "bullish divergence." While retail investors are selling due to short-term market fear (as seen in the Extreme Fear index), on-chain data shows "whales" holding 1B+ XRP are moving assets into cold storage. This suggests that large-scale institutional players are "buying the dip" in anticipation of future growth.
How can I capitalize on the XRP "undervalued" zone?
The most effective strategy is to use Limit Orders at key support levels like $1.40. Our exchange offers "Buy the Dip" automated tools and instant XRP/USD pairs with industry-leading low fees, allowing you to secure your position before the MVRV-Z score reverses back into the overvalued zone.