XRP Today News: ETF and legislative favorable factors double as catalysts, analysts bullish on $2

On February 25, XRP surged significantly, closing at $1.4335, up 6.27% for the day, with intraday gains approaching 10%. This rebound was driven by three main catalysts: capital inflows into US spot cryptocurrency ETFs, progress in negotiations on the Market Structure Act, and strong earnings reports from NVIDIA boosting tech stocks. Analysts indicate that if legislative progress goes smoothly, XRP’s medium-term technical target is $2.

Three Main Catalysts Drive Mid-Week Rebound

ETF Capital Flows Reverse

The US Bitcoin spot ETF market saw a net inflow of $257 million on February 24, reversing the previous day’s net outflow of $203.8 million and ending several weeks of capital outflows. As Bitcoin spot ETFs serve as a risk sentiment indicator for the overall crypto market, this capital inflow directly boosted demand for mainstream crypto assets including XRP. Since its listing in November 2025, the US XRP spot ETF market has accumulated net inflows of $1.23 billion, indicating sustained institutional interest in XRP for medium- to long-term holdings.

Positive Signals in Market Structure Act Negotiations

The White House set a deadline of March 1 for reaching consensus on the final text of the Clarity Act, applying pressure on banks and the crypto industry. Collin McCune, head of government affairs at a16z, stated after attending a legislative meeting that discussions focus on advancing crypto market structure legislation, with both sides recognizing the need for the US to maintain a leading position globally. US crypto media reporter Eleanor Terrett also noted that while negotiations on stablecoin yields have not yet yielded a decisive breakthrough, draft proposals are circulating among stakeholders, indicating ongoing behind-the-scenes progress.

NVIDIA’s Earnings Guidance Boosts Tech and Crypto Market Sentiment

NVIDIA forecasted Q1 revenue exceeding market expectations, reinforcing expectations of sustained strong demand for AI computing power, indirectly boosting overall risk asset investment appetite. Historically, the sentiment correlation between tech stocks and the crypto market is especially pronounced at market turning points.

Technical Analysis: Key Levels and Bull-Bear Boundaries

(Source: TradingView)

The technical outlook for XRP currently shows a coexistence of fundamentally driven rebounds and structurally bearish indicators:

• Current Support: $1.00 (key downside support). If broken, watch for $0.7773.
• Recent Resistance: $1.50 (short-term bull-bear dividing line).
• 50-Day Moving Average Resistance: $1.6266 (major technical resistance if broken downward).
• 200-Day Moving Average Resistance: $2.0740 (mid-term bullish target zone).
• Medium-term Target: $2.00 (within 4-8 weeks, contingent on legislative progress).
• Long-term Target: $3.00 (within 8-12 weeks, pending Senate approval of the Market Structure Act).

Currently, XRP remains below both the 50-day and 200-day moving averages, with their crossover trend stabilizing, indicating a potential trend reversal. Technical analysts suggest that if XRP can sustain above $1.50 and effectively break through the 50-day MA ($1.6266), it would confirm a reversal of the short-term bearish trend, opening upward space. Conversely, a drop below $1.1227 (February low) would put the critical support at $1.00 directly to the test.

Frequently Asked Questions

Can XRP’s rebound today continue, and what are the main factors?

According to analyst frameworks, key variables influencing XRP’s medium-term trend include: the legislative progress of the US Market Structure Act (with March 1 as the White House’s consensus deadline), ongoing capital flows into US XRP spot ETFs, and the broader macro environment—especially the Federal Reserve’s interest rate trajectory and the Bank of Japan’s policy stance.

Why does the Bank of Japan’s policy have a special impact on XRP?

The scale of yen arbitrage trading (borrowing low-interest yen to invest in higher-yield risk assets) directly affects liquidity in the crypto market. When market expectations shift toward a hawkish stance by the Bank of Japan and rate hikes, arbitrage capital is forced to unwind, draining liquidity from risk assets including XRP. On February 25, USD/JPY strengthened to 156.823, reflecting market expectations that the BOJ will maintain an accommodative stance in the short term, supporting this rebound.

US XRP spot ETF has accumulated net inflows of $1.23 billion, why has XRP still fallen sharply?

ETF capital flows reflect a specific channel (mainly institutional investors’ net allocations), but the overall XRP market is driven by broader selling pressure, including profit-taking by early holders, systemic decline in crypto sentiment (Bitcoin ETF experienced net outflows of $7.17 billion during the same period), and delays in the Market Structure Act which shook confidence. The ETF net inflows are offset by larger-scale overall market sell-offs.