XRP is currently rallying after several volatile trading sessions fueled by geopolitical tensions surrounding the Iran conflict, which briefly rocked risk markets and pushed cryptocurrencies into sharp intraday swings. While price action in the crypto sector remains sensitive to macro developments, recent data suggests that parts of the altcoin market may be starting to stabilize.
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A report by CryptoQuant analyst Darkfost shows that despite the uncertainty that has weighed on digital assets in recent weeks, altcoins are starting to show early signs of stability. One key indicator that supports this view is the performance of Total3, a metric that tracks the combined market capitalization of altcoins excluding Ethereum.
According to the data, Total3 is currently consolidated in the range of 640 to 740 billion dollars. Since the beginning of February, the index has gained about 11%, which indicates that some capital is allocated to altcoins even in a weak liquidity environment.
However, the broad structure of the market remains selective. Liquidity in the crypto sector is still relatively limited, while the number of competing altcoin projects is growing. In this environment, capital tends to be concentrated in a limited number of assets, making careful asset selection even more important for investors navigating current market cycles.
Increasing withdrawals and ETFs demand selective interest signals
Darkfost also points to several signals that XRP is attracting renewed interest despite broader market uncertainty. One of the most notable developments is the recent increase in withdrawal transactions from Binance. According to the data, the number of XRP withdrawals has increased sharply on several occasions in recent days, including an increase of more than 14,000 transactions recorded on March 6.
This type of activity often shows that some investors are moving assets from exchanges and private wallets. In market conditions, such behavior may indicate accumulation, as participants withdraw tokens they intend to hold, rather than for immediate trading.
The trend is developing alongside growing institutional interest in XRP-related investment products. According to reports, XRP exchange-traded funds have amassed more than $1.4 billion in total inflows, underscoring robust demand despite the challenging macroeconomic environment affecting the digital asset.
Institutional influence also seems to be gradually increasing. Reports indicate that Goldman Sachs currently holds more than 83 million XRP, which shows how large financial players are beginning to control or acquire the asset.
If this dynamic continues, XRP may continue to attract some of the limited liquidity in the altcoin market, where capital is increasingly concentrated in a small group of assets.
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XRP is consolidating near key support after a prolonged downtrend
XRP continues to trade near the $1.35-$1.40 zone after a broad correction phase that has defined its market structure since the end of 2025. The 3-day chart shows the asset stabilizing after a sharp decline earlier this year that took the price down from $2.20 to $1.10 to $1.20 as buyers put pressure on short selling.
Despite the recent stabilization, the broader trend remains bearish. XRP is trading above its major movement indicators, including the 50-period and 100-period trend lines, which are now sloping downward and acting as dynamic resistance zones. The long-term 200-period moving average near the $1.90 area represents a significant structural barrier that the market needs to overcome to reverse the broader trend.
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Price action over the past few weeks suggests a consolidation phase around $1.25 to $1.45. This range was formed after the February wick that briefly took XRP to its all-time low. Since then, volatility has been compressed as buyers and sellers search for balance.
For the market structure to improve, XRP will likely need to retake the $1.60-$1.70 resistance zone, where previous breakouts have accelerated the decline. Until that happens, the chart shows a period of sideways consolidation within a broader corrective trend.
Featured image from ChatGPT, chart from TradingView.com
