Investors Shift From Holding to Distribution

XRP is trading below critical technical levels after losing the $2 mark, a breakdown that has shifted market sentiment decisively toward fear. Bulls are struggling to find reliable support as price action weakens, and recent attempts at stabilization have failed to attract sustained demand. The loss of this psychological and structural level has left XRP vulnerable, with traders increasingly positioning defensively amid broader uncertainty across the altcoin market.

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According to analysis shared by Darkfost, selling pressure on XRP has intensified materially over recent weeks. The data shows that the current move is not a minor pullback, but part of a deeper corrective phase. XRP has declined by roughly 50% from its cycle peak near $3.66, falling toward the $1.85 region.

This magnitude of decline reflects a clear shift in market behavior, as earlier optimism has given way to risk reduction and capital preservation.

Darkfost’s assessment suggests that the increase in selling is driven by a combination of profit-taking from older positions and capitulation from more recent buyers who entered at higher levels. As the price moves further away from prior highs, confidence has deteriorated, reinforcing the downside momentum.

Exchange Inflows Highlight Rising Sell-Side Pressure

Darkfost further explains that the recent surge in selling pressure becomes especially clear when examining XRP inflows to exchanges, with Binance standing out as the primary focal point.

As the exchange that concentrates the largest share of XRP trading volume, Binance often serves as an early indicator of shifting market intent. Rising inflows to exchanges are commonly interpreted as a signal that holders are preparing to sell, particularly when the increase is sudden and sustained.

After several weeks of relatively calm conditions, characterized by stable and moderate inflows, this pattern changed sharply around December 15. Since then, XRP transfers to Binance have accelerated, with daily inflows consistently ranging between 35 million XRP and a pronounced spike of roughly 116 million XRP recorded on December 19.

This marks a clear break from the prior holding-oriented behavior observed through much of October and November.

The shift in inflow dynamics suggests a change in investor psychology. Longer-term holders appear to be taking profits after XRP’s strong run earlier in the cycle, while more recent entrants are increasingly capitulating and selling at a loss as the price continues to slide. This combination amplifies downside pressure and reinforces the current corrective trend.

As long as elevated exchange inflows persist, conditions for accumulation remain unfavorable. Without a meaningful slowdown in deposits, XRP is likely to struggle to form a durable base, increasing the risk that the correction extends further in both time and depth.

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XRP Price Action Details: Testing Demand

XRP continues to trade under clear technical pressure, with price hovering near the $1.87–$1.90 zone after a prolonged downtrend on the daily chart. The structure shows a decisive loss of bullish control following the rejection from the $3.00–$3.50 region earlier in the year. Since that peak, XRP has consistently printed lower highs and lower lows, confirming a bearish market structure that remains intact.

From a trend perspective, the price is trading below all major moving averages. The short-term moving average has turned sharply lower and now acts as immediate dynamic resistance, while the medium- and long-term averages are also sloping downward, reinforcing the broader bearish bias. Each recent attempt at a relief bounce has failed below these averages, suggesting that sellers continue to dominate rallies.

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The $1.80–$1.85 region is now a critical support area. This zone has absorbed several tests in recent weeks, indicating short-term demand, but the lack of a strong rebound highlights weak buying conviction. A clean break below this level would expose XRP to a deeper retracement toward the $1.50 region, where historical demand previously emerged.

Unless XRP can reclaim the $2.10–$2.20 range and hold above it, the path of least resistance remains to the downside, with risks skewed toward further consolidation or continuation of the correction.

Featured image from ChatGPT, chart from TradingView.com