XRP fell 7% to $2.05 as a flurry of institutional selling broke through critical support levels, drowning out strong ETF inflows and forcing the token back into its November correction range.
• XRP spot ETF inflows reached $666.6M. this month, led by 21Shares’ new TOXR listing
• Supply of exchanges fell 45% over 60 days, showing large-scale accumulation
• Whale wallets added 150M XRP since November 25 despite recent crash
• Selling pressure intensified on Tuesday as risk assets generally weakened
Despite expanding institutional infrastructure around XRP, short-term flows turned markedly bearish. ETF demand appeared unable to offset heavy derivatives liquidation and large-lot selling throughout the afternoon session. Market liquidity thinned as broader crypto benchmarks softened, accelerating the downside.
The split below $2.16 marked a decisive failure in XRP’s recent consolidation structure. This level served as a pivot for the past three weeks, making the loss a key signal that sellers are regaining momentum.
The move pushed XRP back into a descending channel defined by consecutive lower highs from $2.38, $2.30 and $2.22. The structure reflects increasing control from bears, with each jump producing decreasing follow-through.
Volume confirmed the legitimacy of the collapse – rising to 309.2 million, more than 4.6 times the rolling average. This level of activity typically signals institutional exit flows rather than noise. Multiple intraday retests of $2.05 – each accompanied by 3M+ spikes – showed buyers defending the psychological bottom, but with no confirmed reversal.
Momentum indicators reflect deep short-term oversold conditions, but not enough divergence to indicate a completed corrective wave. The $2.05-$2.00 zone remains crucial; losing it reveals the larger November demand band between $1.80 and $1.87.
XRP fell from $2.21 to $2.05 during a steep 7.2% decline. The most aggressive selling occurred after $2.16 gave way, triggering cascading liquidations to the close. The volume increased to DKK 309.2 million. – a 464% increase over the daily average – confirming intense distribution.
Hourly candles formed a descending channel with lower highs and tightening range behavior. Several failed recoveries near $2.12 indicated continued selling pressure. Buyers repeatedly absorbed declines at $2.05, but without momentum strong enough to regain broken support.
• Holding $2.05 is critical; a breakdown reveals $1.87-$1.80 next
• Reclaiming $2.16 is required to invalidate the bearish structure
• ETF inflows support long-term outlook, but short-term tape remains heavy
• Watch for bullish divergence on the hourly RSI and MACD as early reversal signals
• A high of $2.12-$2.16 would signal a resumption of accumulation
