XRP Slides Below $2.00 as Bearish Indicators and Exchange Inflows Weigh on Market

XRP is trading below $2.00, with bearish momentum reinforcing the likelihood of further downside in the near term. The price has fallen to as low as $1.85, breaking critical support zones and signaling heightened selling pressure. On-chain data suggests increasing distribution as traders move tokens to exchanges like Binance, amplifying short-term bearish conditions.

XRP has entered a bearish technical phase, with the 50-day moving average falling below the 200-day line to form a death cross pattern. The price is currently confined within a descending channel, with immediate resistance at $2.22 and a key support level at $1.77. This framework suggests the path of least resistance remains downward unless the asset breaks out of this structure according to market analysis.

Despite the bearish price action, on-chain activity shows resilience. Daily transaction counts on the XRP Ledger have reached nearly 900,000, and significant value transfers are occurring regularly. This divergence between price and on-chain data indicates that the network remains active and could signal early adoption positioning.

Why Is XRP Under Pressure Below $2.00?

The decline in XRP's price is driven by a combination of bearish technical indicators and macroeconomic pressures. The Taker Sell Ratio on Binance has risen to 0.53, highlighting aggressive selling. Institutional ETF inflows, while significant, have not been enough to offset the selling pressure, with total inflows into XRP ETFs reaching $1.14 billion since November according to financial reports.

Exchange inflows have surged, especially in December, peaking at 116 million XRP on December 19, indicating a shift from accumulation to forced selling. These inflows suggest investors are preparing to sell on rallies, reinforcing the bearish sentiment. Meanwhile, total XRP exchange reserves have dropped from $7.03 billion in November to $5.70 billion in December, signaling reduced liquidity in key markets.

What Can Investors Expect in the Near Term?

The near-term outlook for XRP remains uncertain. The price is currently near its 2025 low of $1.85, with support at $1.77 and $1.80 as key levels to monitor. A breakdown below $1.77 could open the door for a deeper correction, while a recovery above $1.87 could signal easing selling pressure. Market psychology has turned deeply negative, with XRP entering Santiment's 'fear zone'.

The broader macroeconomic environment also plays a role in XRP's performance. Bitcoin's volatility and the October 2025 market crash have exacerbated bearish momentum. Additionally, whale activity and concentrated token ownership pose risks to decentralization and long-term price stability according to market analysis.

While some analysts remain cautiously optimistic about XRP's potential for a recovery—drawing comparisons to its 2017 price cycle—the market remains in a fragile state. The formation of a potential Adam and Eve pattern on the 1-hour chart offers a glimmer of hope for a reversal, but historical symmetry does not guarantee a similar outcome under current conditions according to technical indicators.

Investors should closely watch the balance between sell-side pressure and technical indicators. The coming weeks will likely provide clearer signals about whether the current correction will persist or if XRP can stage a meaningful recovery.