XRP is facing renewed downside pressure after slipping below a key psychological level, raising concerns that the token could revisit its December lows in the days ahead.
The price of XRP has now fallen for six straight sessions, breaking under the important $2.00 mark on Wednesday. According to data from crypto.news, the token has lost 11.2% over the past week and is now down nearly 20% from its highest level earlier this month. The move reflects not only weakness specific to XRP but also a broader sell-off across the crypto market.
Market sentiment has turned cautious as traders react to growing uncertainty on several fronts. Ongoing trade tensions between the United States and the European Union, centered on a dispute involving Greenland, have weighed on risk assets globally. At the same time, disappointment followed news that the long-awaited U.S. crypto market structure legislation — the CLARITY Act — has been delayed again in the Senate. Together, these developments have dampened enthusiasm across the sector.
Institutional demand for XRP has also cooled. Data from SoSoValue shows that the five U.S.-listed XRP exchange-traded funds recorded a combined $53.3 million in net outflows on Tuesday. This ended a seven-day run of inflows that had attracted close to $70 million into the products. The shift suggests that large investors are stepping back while they wait for clearer signals from lawmakers and global policymakers.
Signs of growing fear are also visible in broader market indicators. The Crypto Fear and Greed Index dropped eight points in a single day to 24, pushing it into the “extreme fear” zone. Historically, such readings often coincide with heavy selling pressure as traders rush to reduce risk during periods of uncertainty.
From a technical perspective, the outlook has weakened further. XRP has broken below a multi-month descending trendline that previously acted as both support and resistance. The loss of the $2 level — a long-standing psychological anchor for traders — adds to the bearish picture. Momentum indicators are also turning negative. The MACD has formed a bearish crossover and is threatening to dip below the zero line, while the Chaikin Money Flow index is close to entering negative territory, suggesting institutional capital may be flowing out of the asset.
If selling pressure continues, analysts expect XRP to test its next major support around the December low of $1.77.
Still, the story is not entirely bleak. Despite short-term weakness, activity on the XRP Ledger continues to grow. The network is seeing strong adoption in real-world asset tokenization and stablecoin usage. Monthly figures show a 27% jump in RWA-linked value to more than $400 million, along with an 11% rise in stablecoin market capitalization on the network.
For now, technical signals suggest the path of least resistance remains lower. However, a sustained recovery above the $2.00 level could indicate that improving fundamentals are beginning to outweigh bearish momentum — potentially stabilizing XRP after a turbulent week.
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