XRP Consolidates Below Key $2 Threshold as Market Sentiment Shifts

The price of XRP has entered a period of consolidation below the psychologically significant $2 level as the year draws to a close. This phase occurs despite continued inflows into spot exchange-traded funds (ETFs), though the momentum has noticeably decelerated. The slowdown suggests a more cautious stance among institutional participants. Interestingly, while the spot price weakens, on-chain metrics reveal a contrasting pattern of accumulation by large-scale holders.

Contrary to the broader market's hesitant sentiment, major holders appear to be buying the dip. Data from the analytics firm Santiment indicates that addresses holding between 100 million and 1 billion XRP have increased their share of the total supply, approaching 12.8%. This pattern of accumulation implies that well-capitalized investors view the current price correction not as a signal to exit, but as a potential entry point. Such a divergence—where the price declines while whale holdings rise—is often interpreted as a precursor to a possible market bottom, signaling a transfer of assets from short-term to long-term oriented investors.

ETF Inflows Show Structural and Macro Hurdles

A key contributor to the current price softness is the fading momentum in the ETF sector. In the week ending December 19, XRP spot ETFs recorded net inflows of just $82.04 million. This represents the lowest weekly figure since their launch in November. While this still marks the 25th consecutive week of inflows, the volume appears modest compared to the explosive debut of Bitcoin ETFs.

Market observers attribute this to structural limitations: there are currently only five XRP ETFs available, and none of the top-ten major asset managers serve as an issuer. Furthermore, the macroeconomic climate continues to pressure risk assets, even though total inflows since the launch have reached an impressive $1.07 billion.

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

Technical and Macroeconomic Crosscurrents

From a technical perspective, conditions remain tense. XRP is currently trading at $1.92, positioned below both the 50-day and 200-day moving averages, which confirms the short-term downtrend. However, the Relative Strength Index (RSI) reading of 28.8 signals an oversold condition, increasing the likelihood of a technical rebound.

Potential support may emerge from the macroeconomic landscape. The probability of an interest rate cut by the U.S. Federal Reserve in March 2026 has increased. Additionally, the latest interest rate decision from the Bank of Japan provided some market relief, as concerns over an unwinding of yen carry trades diminished.

For a sustained trend reversal, XRP must reclaim the $2 level. Until then, investor focus will remain on regulatory developments in the United States, where pivotal market structure legislation could be debated in the first quarter of 2026.