The cryptocurrency XRP, ranked fourth by market capitalization, is confronting significant selling pressure after its value fell below the crucial $2.00 threshold on December 17. Currently trading near $1.90, the decline is notable not merely for its scale but for the historic collapse occurring in related derivatives markets, distinguishing it from a routine market correction.

Institutional ETF Flows Offer a Lone Bright Spot

Amid the widespread bearish sentiment, one consistent source of demand has emerged from exchange-traded funds. XRP-focused ETFs have recorded uninterrupted capital inflows for more than 30 consecutive days. As of the latest data, assets under management in these products have surpassed $1.12 billion. A notable single-day inflow of $10.89 million occurred on December 15. Despite this sustained institutional interest, the buying has been insufficient to counterbalance the intense selling pressure from other market segments.

Derivatives Data Reveals a Market Exodus

The most alarming signals originate from the futures and derivatives markets. Analytics from CryptoQuant indicate a staggering 95.7% plunge in the Taker Buy Volume on the Binance exchange. This metric has collapsed from over $5.8 billion in July to less than $250 million currently. Concurrently, aggregate Open Interest has retreated sharply from a peak of $10.94 billion to approximately $3.71 billion.

The Leverage Ratio on Binance now sits at just 0.18, representing one of the lowest readings in the present market cycle. The breach below $1.93 triggered liquidations worth $14.47 million. Furthermore, the Taker Buy-Sell Ratio has remained in negative territory for several weeks, indicating persistent selling dominance in immediate order flow.

Should investors sell immediately? Or is it worth buying XRP?

Broad-Based Selling Across Wallet Cohorts

On-chain analysis from Hyblock Capital confirms that the sell-off is remarkably widespread, encompassing all investor classes throughout December. The net selling from different wallet tiers breaks down as follows:

• Large Wallets (holding $100,000 to $10 million): -$34 million
• Mid-Size Wallets ($10,000 to $100,000): -$6.89 million
• Retail Wallets (holding $0 to $10,000): -$8.68 million

A striking example of profit-taking occurred on December 11. A long-dormant wallet, with an original cost basis around $0.40, realized an estimated profit of $721.5 million as XRP traded near the $2.00 level.

Technical Picture Shows Significant Weakness

From a chart perspective, XRP has decisively broken below both its 50-day and 100-day moving averages. The next major structural support now rests at the 200-day moving average, located in the $1.70 to $1.80 range. This suggests a potential for further declines of 6% to 11% from current prices. Trading volume has been on a consistent downtrend since August, a classic sign of dwindling buyer interest during price pullbacks.

For the bearish trend to reverse, XRP would need to reclaim the $2.30 to $2.50 resistance zone with a substantial increase in trading volume. While the extremely low leverage in the market reduces the near-term risk of a cascading liquidation event, it also underscores a withdrawal of speculative capital. In the immediate term, the asset’s ability to hold support between $1.88 and $1.90 remains critically important.

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