XRP Price Weakens at Critical Level, Raising Risk of Deeper Pullback

Investors and traders appear cautious as the XRP prices dwindle amidst mounting selling pressure on the market. With the entire crypto market facing a downward direction, XRP has seen sharp downward price movements that have drained investor confidence.

A general sentiment regarding risk-off strategies is dominating the market at the moment, and XRP, too, has fallen victim to this, even though the institutional growth has been tremendous. Even with renewed vigor in ETF inflows, the market seems to be following a technical picture rather than basing it on strong fundamentals.

A View Through The Technical Lens

The $1.91 mark had been a strong support level that held on for weeks as XRP kept retesting it several times. The decisive fall below this level has made the picture clear that XRP will struggle to reposition itself at the $2.00 mark in the near future.

During this breakdown, it was observed that the trading volume had gone up, indicating that the events that fueled the bear run were no longer illiquid market conditions, but rather a potent and larger market participation from bigger players.

With volumes rising as high as 191 million XRP, which is 246% higher than the 24-hour average, while XRP was falling through the $1.93 mark, meant that an acceptance was building up at this zone. The price action on lower timeframes remains below the $1.88 level, which has now transformed into an immediate resistance point.

It has become clear that the selling pressure is yet to be exhausted since the momentum indicators are still compressed. With the price marking lower highs and failed rebound attempts, the hourly timeframe is projecting a bearish outlook.

Disappearing XRP Whales

A clear picture regarding the disappearance of whale wallets from the XRP market is coming in, as on-chain data analysts are pondering over the recent XRP market crash. Since late November, a total of 1.18 billion XRP has been sold, which has extensively pressurized the market. Whale wallets holding between 1 million XRP to 100 million XRP were the main participants in this selling spree.

The selloff was well planned, as there is a clear timeline for the activity that is taking place in the market. On November 24, the whale balances were on the upper end of their balance figures. A substantial fall in this balance was recorded by December 1st, 2025. Then there were two massive selloffs on December 8th and 15th, respectively. All of these, when analysed together, show a clear pattern of exit.

XRP Price Followed The Whales

Amidst the enormous selling pressure, XRP found itself in a critical position where it could not climb past the $2.10 level. Prices kept recording lower highs as whales kept exiting the market. From what could be understood generally, there was not enough buying pressure to sustain the whale inputs into the market in the form of XRP.

By mid-December, this selling pressure had taken the market by storm. Buyers have only recently re-entered the market, but their efforts are yet to bear fruit as XRP seems to be stuck in the $1.88-$1.90 region.

This is not a first-time incident when it comes to XRP. Wallets that hold between 1 million to 100 million XRP often act as a market anchor. Their activity has previously had much to do with volatile price swings. However, in positive market conditions, these whales act as a cushion to absorb selling pressure, and their exit meant that there was nothing to dampen the fall of XRP this time.

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