- XRP fell 7% to $2.05 after breaking below key support, with heavy institutional selling overpowering strong ETF inflows.
- Traders now watch the $2.05 level closely, as losing it could expose the next demand zone between $1.80 and $1.87.
XRP entered the week under heavy selling pressure after a sharp 7% decline pulled the token back toward a critical support range. Despite strong institutional participation and growing ETF inflows, short-term flows turned bearish, alerting traders to deeper downside risk.
Institutional Selling Overpowers ETF Strength
XRP dropped to $2.05 after institutional sellers overwhelmed inflows from XRP spot ETFs. This shift pushed the asset back into its November correction range despite notable long-term accumulation trends.
Recent market data shows:
- XRP spot ETFs recorded $666.6 million in inflows this month
- 21Shares’ new TOXR listing added significant demand
- Exchange balances fell 45% over 60 days, signaling large-scale accumulation
- Whale wallets added 150 million XRP since November 25
However, broader weakness across risk assets intensified Tuesday’s selloff, thinning liquidity and accelerating the downside.
Technical Breakdown Confirms Bearish Structure
A decisive breakdown below $2.16 ended XRP’s three-week consolidation. This level had served as a major pivot, and losing it confirmed growing control by sellers.
Price action has now formed a descending channel from lower highs at $2.38, $2.30, and $2.22. Each bounce shows limited follow-through, a sign that buyers are struggling to regain control.
Volume supported the bearish shift:
- Total volume spiked to 309.2 million, more than 4.6× the rolling average
- Multiple retests of $2.05 came with volume surges above 3 million, suggesting active defense by buyers but no confirmed reversal
While indicators show oversold conditions, analysts do not yet see clear divergence to confirm a completed corrective wave.
Key Levels Traders Are Watching
XRP’s immediate outlook hinges on two price zones:
- $2.05–$2.00: A crucial support area. Losing this range exposes the broader $1.87–$1.80 demand region.
- $2.12–$2.16: The zone XRP must reclaim to invalidate the bearish pattern and signal renewed accumulation.
Short-term trading remains heavy, but long-term signals, such as ETF inflows and reduced exchange supply, continue to support a more constructive outlook once market pressure eases.
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