The cryptocurrency market is presenting a challenging environment for XRP investors. As the digital asset tests a crucial psychological level, a significant technical decision point appears imminent. This comes despite a notable and sustained inflow of capital into related exchange-traded funds.
A Precarious Price Level
On December 11, 2025, XRP’s price action turned negative once more, breaching the key $2.00 threshold. The token had declined approximately 4.3% in a single session, falling from $2.09 to hover around the $2.00 mark. The broader performance picture is uniformly bearish across timeframes: a 3.1% drop over 24 hours, a 7.1% loss across seven days, and a nearly 19% decline for the month. Year-to-date, XRP remains down by roughly 12.5%.
A surge in trading activity accompanied the rejection at the $2.09 resistance zone. Volume spiked to $172.8 million—a 205% increase over the daily average. The overall session volume finished 54% above its seven-day mean. Such coordinated selling activity, particularly at a defined technical level, often signals profit-taking by larger, institutional holders rather than retail investor panic.
ETF Inflows Defy Spot Price Weakness
In a contrasting and significant trend, XRP-focused exchange-traded funds continue to attract capital irrespective of the token’s declining market value. Last week alone saw inflows exceeding $170 million with no substantial outflows recorded. Cumulative inflows are now approaching the $950 million milestone.
Canary Capital leads the field, managing assets worth about $371 million, followed by Grayscale’s GXRP fund with $213 million. Collectively, XRP ETFs have surpassed $1 billion in net assets. This sustained institutional investment, set against a backdrop of weak price performance, creates a notable divergence. It establishes an asymmetric setup: should market sentiment shift positively, the existing institutional demand could potentially accelerate upward price movement more rapidly than retail-driven rallies typically allow.
Should investors sell immediately? Or is it worth buying XRP?
On-Chain Metrics Paint a Mixed Picture
Data from the XRP Ledger itself reveals conflicting signals. A concerning indicator is the dramatic 89% collapse in daily transaction fees, which have fallen to a 90-day average of just 650 XRP. This represents the lowest level recorded since December 2020. As network fees directly correlate with usage, this sharp decline raises questions about current demand for XRPL transactions.
On a more positive note, exchange balances have seen a substantial drawdown over the past 60 days, decreasing from 3.95 billion to 2.6 billion tokens. A reduction in supply readily available on trading platforms typically suggests investors are moving holdings into private custody—a behavior associated with longer-term investment horizons rather than immediate selling intent.
Technical Compression Hints at Impending Volatility
XRP’s price has been consolidating within a narrowing triangular pattern for several months. The $2.00 level currently serves as primary support, with $1.95 acting as the next significant zone below it. Overhead resistance remains firmly established between $2.09 and $2.10, a barrier that has repelled multiple breakout attempts.
A decisive and high-volume break above this resistance—requiring volume in excess of $100 million—could open a path toward a target range of $2.22 to $2.28. The tightening price range suggests the asset is coiling for a more substantial move. The direction of that breakout, however, remains uncertain. The coming trading sessions will be critical in determining whether buyers can successfully defend the $2.00 support line or if a breakdown toward $1.95 will commence.
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