XRP Faces Critical Test as Selling Pressure Mounts

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The cryptocurrency XRP is confronting significant selling pressure, having recently fallen below the psychologically important $2.00 threshold. Following a period of consolidation, the digital asset broke through key support levels over the weekend, a move accompanied by a notable surge in trading activity.

Despite the current price decline, institutional interest in XRP appears robust. Since mid-November, spot exchange-traded funds (ETFs) tied to XRP have attracted nearly $900 million in inflows. Industry observers note that these products have seen stronger institutional uptake compared to similar Ethereum-based ETF offerings.

This institutional engagement exists alongside a resolved regulatory landscape. Ripple's protracted legal dispute with the U.S. Securities and Exchange Commission (SEC) concluded in 2025. The company paid a $125 million penalty but secured regulatory clarity for XRP within the United States. Ripple continues to advance its ecosystem, developing its USD-backed stablecoin, RLUSD, and enhancing cross-border payment solutions via RippleNet.

Network Metrics Signal High Activity Amid Price Decline

On-chain data presents a contrasting picture to the market price action. Activity on the XRP Ledger has reached notable levels. The network's Velocity metric, which measures how frequently XRP tokens change hands, hit a yearly high of 0.0324 in early December, indicating substantial transaction volume from both traders and institutional participants.

Ownership distribution is also shifting. The number of wallets holding at least 100 million XRP has decreased by nearly 21% over the past eight weeks. However, the large investors that remain now control over 48 billion tokens—the highest concentration in seven years. With the price persisting below $2.00, approximately half of all XRP is currently held at a loss.

Technical Outlook Points to Key Support Levels

XRP is currently trading around $1.92, placing it at the lower boundary of its recent range. The breakdown below the $1.93 support zone occurred on above-average volume, a signal that sellers have gained control. Trading volume during the downward move was roughly 78% higher than the 24-hour average.

Attempts at recovery have so far been unimpressive, with buyers showing little conviction and rebounds failing to reclaim the previous trading range. Several critical price levels are now in focus:

• $1.90: The immediate and crucial support level that must hold.
• $1.77: A decisive level; a break below could trigger accelerated selling.
• $0.80: The next significant demand zone identified by on-chain analysis, where substantial buying occurred in prior market cycles.

The coming trading sessions will be decisive. A successful defense of the $1.90 level is required for stabilization, while a sustained move back above $2.00 would improve the technical picture. Analysts warn that a failure to hold support at $1.77 could open the path for a deeper decline toward the $0.80 region.