Markets often demand resilience before growth, and February 2026 proved to be a defining test for XRP investors. Amid sharp price swings and broader crypto volatility, many speculative traders were forced out of their positions, leaving stronger, long-term holders in control. This cleansing moment has left analysts examining whether the recent shakeout signals an imminent rebound.
Crypto analyst STEPH IS CRYPTO, a widely followed voice on X, highlighted this dynamic in a recent X post. Steph pointed to on-chain indicators that suggest XRP has just “flashed all the weak hands,” a phenomenon in which overleveraged and short-term holders exit, leaving the market primed for accumulation.
Steph emphasized that while capitulation can appear alarming, it often marks a turning point, setting the stage for renewed upward momentum.
💥BREAKING:$XRP just flushed all the weak hands.
Time to go up! pic.twitter.com/8pmXpkyF8v
— STEPH IS CRYPTO (@Steph_iscrypto) February 26, 2026
The Weak Hands Flush
XRP fell roughly 30 % in February, testing lows near $1.11, as broader crypto markets reacted to macroeconomic uncertainty and heavy leverage liquidations. Steph observed that mass sell-offs, particularly in derivatives markets, forced overextended traders to exit, effectively reducing speculative noise.
On-chain analytics, including Glassnode’s NUPL (Net Unrealized Profit/Loss) chart, confirmed widespread capitulation, dipping into negative territory—a hallmark of market bottoms. Steph noted that the forced liquidation of roughly $775 million in XRP leverage during the “Black Monday” event further cleared weak positions, leaving stronger holders in command of the market.
Institutional Support Amid Volatility
Despite the intense short-term pressure, XRP attracted significant institutional attention. Steph highlighted that $1.2 billion in spot ETF inflows entered XRP-based products during the same period, signaling that long-term investors were buying the dip.
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This institutional demand contrasts sharply with retail-driven panic selling and underscores the market’s underlying resilience. Analysts view this inflow as a critical factor that may help stabilize XRP prices and provide a platform for the next bullish cycle.
What This Means for XRP’s Recovery
The combination of washed-out weak hands and ongoing institutional accumulation creates an environment conducive to renewed growth. With reduced speculative pressure, the market may experience fewer abrupt liquidations, while steady inflows support long-term price stability.
Steph argued that these conditions often precede strong upward moves, noting that XRP now sits in a healthier, more balanced market structure than before the February downturn.
In essence, the recent correction may represent a pivotal moment for XRP. By clearing short-term traders and attracting patient capital, the market has laid the foundation for potential upward momentum. As Steph concluded, the data and on-chain signals suggest it is not just sentiment speaking—“it’s time to go up.”
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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