XRP price is under renewed pressure, slipping around 1.6% in the last 24 hours and remaining one of the weakest large-cap cryptocurrencies on a weekly basis. Compared to levels seen a month ago, XRP is down roughly 16%, with price action compressing near the lower boundary of a descending triangle pattern. While this structure does not yet confirm a breakdown, several converging market signals suggest traders should remain cautious as the year draws to a close. On the technical side, XRP continues to trade sideways near key support, failing to build upside momentum.
Between December 18 and December 27, the price attempted a modest recovery, but the Money Flow Index moved lower during the same period. This divergence often signals distribution rather than accumulation, indicating that retail participants may be selling into short-term rallies. As a result, XRP remains pinned near the bottom of the pattern instead of challenging resistance. Concerns extend beyond short-term traders.
On-chain data from HODL Waves shows a sharp decline in wallets holding XRP for two to three years, falling from over 14% of supply in late November to near 5.6% by late December. These long-term holders typically represent strong conviction, and their exit removes an important layer of price support. When both retail traders and long-term investors reduce exposure simultaneously, downside risks increase. Capital flow metrics reinforce this cautious outlook.
The Chaikin Money Flow indicator remains negative and continues to trend lower, suggesting that larger capital inflows are weakening. Even though XRP price is consolidating, the lack of strong buying pressure implies that demand is struggling to absorb supply, limiting the potential for a sustained rebound. Key price levels will determine the next move. XRP is currently trapped between $1.90 resistance and $1.81 support.
A reclaim of $1.90, followed by a push toward $1.99, would signal renewed strength and a possible breakout from the triangle. Conversely, a decisive break below $1.81 could confirm a bearish continuation, opening downside targets near $1.68 and potentially $1.52 if selling accelerates. Until clearer bullish signals emerge, XRP remains vulnerable within its current range.
Leave a Reply