XRP Faces Mounting Selling Pressure as Key Support Levels Falter

The digital asset XRP has broken below crucial technical support levels, signaling a shift in market control toward sellers. Currently trading at $1.92, the cryptocurrency has exited a multi-day consolidation phase to the downside, with key indicators pointing to increased bearish momentum.

A decisive move occurred on December 21 at approximately 13:00 UTC, when XRP dropped to $1.90. This decline was accompanied by significant trading volume of 93.8 million tokens, a figure 78% above the 24-hour average. The price band between $1.93 and $1.95, which previously acted as a support zone, has now flipped to become a resistance area. Subsequent attempts at a near-term recovery have been rejected at this level.

The asset's market capitalization stands at $116.6 billion, with a daily trading volume reaching $2.32 billion. Of the maximum supply of 100 billion XRP, 60.57 billion tokens are currently in circulation.

Divergent On-Chain Signals from Large Holders

Analysis of on-chain data presents a nuanced picture of investor behavior. Over the past eight weeks, the number of wallets holding a minimum of 100 million XRP has decreased by 20.6%. Despite this reduction, the remaining large-scale investors collectively control over 48 billion XRP, representing a seven-year high in concentration. Meanwhile, mid-tier holders possessing between 1 million and 10 million tokens have divested approximately 150 million XRP.

An interesting technical note: the XRP Ledger's network velocity hit a record high of 0.0324 in early December. This metric suggests tokens are actively changing hands between investors rather than sitting idle in cold storage.

Sentiment Indicators Hint at Potential Inflection Point

According to analytics provider Santiment, social media discourse around XRP has slid into a "fear zone," with negative commentary significantly outweighing positive sentiment. Historically, such periods have often coincided with local price bottoms. Adding a potential glimmer of hope, the Chaikin Money Flow indicator is moving back into neutral-to-positive territory, which may signal that capital outflows are beginning to subside.

Ripple's Ecosystem Developments Provide Context

Amid the price action, developments within Ripple's broader ecosystem continue. The company's USD-pegged stablecoin, RLUSD, launched in December 2024, has achieved a market capitalization of $1.26 billion. Its supply grew by 28% in November alone. Ripple is expanding the stablecoin's presence onto Ethereum Layer-2 blockchains, including Optimism, Base, and Unichain. Pilot programs with partners Mastercard, WebBank, and Gemini for credit card settlements are already underway.

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

In a separate regulatory development, the U.S. Office of the Comptroller of the Currency (OCC) granted Ripple a preliminary approval for a bank charter.

Key Technical Levels to Watch

Resistance Zones:
* $1.93 - $1.95 (former support, now resistance)
* $1.97 - $2.03
* $2.15

Support Zones:
* $1.90 (immediate level)
* $1.82 - $1.87
* $1.77 (critical level)

Data from Glassnode indicates that below the $1.77 threshold, the realized supply thins out considerably until the next significant zone around $0.80, where substantial accumulation occurred in previous market cycles.

Broader Market Backdrop

The lengthy legal dispute with the U.S. Securities and Exchange Commission (SEC) concluded in 2025 with a $50 million settlement. Subsequently, spot XRP exchange-traded funds (ETFs) from asset managers including Franklin Templeton, Grayscale, and Bitwise began trading in November. Early reports suggest these products are attracting interest from global pension funds.

In the near term, the $1.90 price level is likely to be pivotal in determining whether XRP finds stability or encounters further distribution pressure.