XRP News Today: XRP Trapped Below Key Resistance as Sellers Maintain Control

XRP Price Analysis: Bearish Trends and Market Sentiment

XRP investors are bracing for more pain as the token fails to find any meaningful support beneath its descending trendline, remaining trapped in a bearish pattern that has persisted since mid-August according to analysis. Despite the recent inflows into U.S. XRP ETFs, the price has yet to confirm a reversal above $2.20, with sellers continuing to control key resistance levels as reported. The cryptocurrency currently trades around $1.91, hovering just above the $1.88 to $1.90 support zone, where further selling could deepen the decline.

Technical indicators remain bearish, with XRP failing to break above the 20-day EMA at $2.05 or the 50-day EMA at $2.19, both of which now act as resistance according to technical analysis. On the 2-hour chart, the token has shown weak bounces from the $1.86–$1.88 support level, with RSI failing to cross above the neutral 50 mark and MACD remaining in negative territory as indicated. This lack of follow-through suggests traders are hesitant to commit to long positions.

Short-term traders are also watching the flow of XRP onto exchanges, which has remained negative despite ETF inflows according to market data. A net outflow of roughly $8 million on Dec. 16 highlighted continued distribution during rallies, reinforcing the bearish narrative. While institutional investors appear to be positioning via ETFs, retail and spot traders remain on the sidelines, waiting for a clearer breakout.

Why the Standoff Happened

The breakdown of XRP's $1.93 Fibonacci level has shifted short-term momentum in favor of sellers, with heavy volume confirming active distribution during the recent pullback according to market analysis. The price had previously stalled near this level, and its loss signals a transition from range expansion to rejection. This move is compounded by the fact that XRP failed to hold above $1.92, triggering systematic selling into strength.

The failure to break through key resistance has left XRP in a vulnerable position. With price capped below $1.93–$1.95, any upside movement is seen as corrective rather than a sign of a broader trend reversal. Traders are now closely watching the $1.93 level as a key resistance, with a successful retest needed to shift momentum back in favor of buyers as analysts note.

What Analysts Are Watching

Market participants are focusing on the critical support levels near $1.88–$1.90, where the next major test for XRP lies according to technical analysis. A sustained break below this range would open the door to a deeper pullback toward $1.70, while a successful defense could allow the token to consolidate before another attempt at a breakout. The volume behavior during price action is also a key indicator, with continued selling on rallies confirming ongoing distribution and bearish control.

The $2.00 level, which had previously acted as a strong support, has now become a psychological and technical wall that bulls must reclaim to signal a genuine turnaround as market reports indicate. A daily close above $2.20 followed by a breakout through the descending trendline would validate the bullish case, while a failure to hold above $1.93 would reinforce the bearish outlook.

Risks to the Outlook

While ETF inflows have continued to accumulate, pushing total net assets to over $1.18 billion, the broader market remains risk-off according to market data. The recent selloff in AI-related equities and Bitcoin volatility have left XRP exposed, with over $190 million in crypto liquidations in just four hours during U.S. trading as reported. This macro pressure has accelerated the outflow from altcoins, with XRP's market dominance hitting a 90-day low as investors rotate into Bitcoin and other major assets.

Institutional demand, though growing, has not yet translated into on-chain price strength. ETF inflows have been steady, but the price remains below the key EMA cluster. This disconnect suggests that while there is growing interest from institutional players, retail and speculative traders remain cautious, waiting for clearer signals of a trend reversal.

What This Means for Investors

For short-term traders, XRP remains a tactical hold until it can reclaim $1.96–$2.00 and break above $2.27, which would indicate that bears are losing control according to market analysis. Longer-term investors with a high-risk appetite may see the current levels as an opportunity, especially given the historical rebounds from similar configurations. However, the risk of a further decline toward $1.63 or even $1.00 remains if sellers maintain control.

The key for institutional and retail investors alike is to monitor ETF inflows alongside on-chain price action. A sustained move above $2.20, combined with a break through the descending trendline, would signal that ETF demand is translating into price strength. Until then, XRP will remain in a standoff between growing institutional interest and entrenched bearish control.