XRP experienced a significant decline of 7%, dropping to $2.05 as institutional selling pressures overwhelmed recent bullish trends, sending the token back into a correction range reminiscent of last November. This downturn occurred despite notable inflows into XRP spot ETFs, which totaled approximately $666.6 million this month, driven primarily by the newly launched TOXR listing by 21Shares.
In a puzzling twist, while exchange supply saw a remarkable 45% reduction over the past 60 days—indicative of large-scale accumulation by long-term investors—whale wallets managed to add around 150 million XRP since November 25. However, this accumulation was not enough to sustain prices, as selling pressures intensified on Tuesday, coinciding with a broader weakening of risk assets across markets.
Despite the bolstering institutional infrastructure surrounding XRP, recent short-term market activity reflected a starkly bearish sentiment. Demand from ETFs failed to offset a significant unwinding of derivatives positions and substantial large-lot selling observed throughout the afternoon. The thinning market liquidity contributed to the accelerating downturn, and XRP’s breakdown below the $2.16 support level marked a critical failure of its recent bullish consolidation, raising alarms about the resurgence of bearish control.
This level had acted as a pivot point for the past three weeks, making its loss a pivotal sign of renewed seller momentum. The price movement plunged XRP back into a descending price channel marked by consecutive lower highs at $2.38, $2.30, and $2.22, indicating increasing dominance from sellers. Volume metrics validated this breakdown, spiking to 309.2 million—over 4.6 times the rolling average—indicating substantial institutional exit flows rather than routine market noise.
Although buyers attempted to defend the psychological support level at $2.05 during multiple intraday retests, there was no confirmed reversal, underscoring persistent selling pressure. Current momentum indicators suggest that the market is deeply oversold in the short term, yet show insufficient divergence to confirm a complete corrective wave. The $2.05 to $2.00 range remains critical; a loss of this support could expose a larger demand band between $1.80 and $1.87.
XRP fell sharply from $2.21 to $2.05, reflecting a steep 7.2% decline prompted by aggressive selling that followed the breakdown at $2.16, which triggered cascading liquidations as trading neared the day’s close. Following this plunge, volume surged dramatically to 309.2 million, signaling intense distribution.
Hourly candles displayed a pattern consistent with a descending channel characterized by lower highs and tightening range behavior, further confirming persistent sell pressure. Despite repeated attempts by buyers to absorb dips at $2.05, their efforts lacked the momentum necessary to reclaim the previously broken support levels.
Holding the $2.05 level is critical, as a breakdown could lead to testing the $1.87 to $1.80 range. Conversely, reclaiming $2.16 would be essential to invalidate the current bearish structure. Although ETF inflows provide a positive long-term outlook for XRP, the short-term trend remains heavily weighted towards selling. Traders are advised to monitor for potential bullish divergence on the hourly RSI and MACD as early signals for reversal, while a high-volume recovery above $2.12 to $2.16 could indicate that accumulation efforts are resuming.
