Market participants appeared focused on liquidity conditions and risk reduction, with selling pressure intensifying around previously well-defined support levels.
News background
- XRP traded sharply lower during the latest session as broader crypto markets faced renewed risk-off pressure.
- Despite continued spot ETF inflows over recent weeks, short-term price action has been dominated by technical positioning rather than fundamental developments.
- No single catalyst drove the move.
- Instead, the decline reflected positioning adjustments across majors, with XRP showing relative weakness compared to peers as supply emerged into rallies.
Technical analysis
- XRP broke decisively below the $1.93 support zone, a level that had held through multiple tests over recent weeks. The breakdown occurred alongside a significant increase in trading volume, indicating participation from larger market participants rather than thin, illiquid trading.
- Total session volume reached approximately 191 million tokens, around 246% above the 24-hour average. The heaviest activity coincided with the move through $1.93, confirming acceptance below that level.
- On lower timeframes, price action remained capped below $1.88, which now functions as near-term resistance.
- The structure on the hourly chart remains bearish, with lower highs and limited follow-through on minor rebounds. Momentum indicators remain compressed, suggesting selling pressure has not fully exhausted.
Price action summary
- XRP declined from just under $2.00 to a session low near $1.87
- The $1.93 level failed quickly once tested, with no sustained bid response
- Price consolidated briefly between $1.86–$1.88 following the breakdown
- Volume remained elevated into the close, signaling ongoing repositioning
Volatility expanded notably, with XRP trading a wide intraday range relative to recent sessions.
What traders should know
- $1.93 has transitioned from support to resistance and remains a key level to watch
- Sustained trading below $1.88 keeps downside pressure intact in the near term
- $1.85 is the next meaningful area where buyers may attempt to stabilize price
- Any recovery attempt likely requires a reclaim of $1.93 on declining volume to signal reduced distribution
- Until that occurs, XRP remains technically vulnerable, with price action driven more by flow and positioning than by longer-term accumulation signals.
Source: https://www.coindesk.com/markets/2025/12/16/xrp-price-weakens-at-critical-level-raising-risk-of-deeper-pullback
