Key Insights:
- XRP’s descending wedge pattern and reduced selling pressure suggest a potential end to the current downtrend.
- Whale wallets holding 10,000 to 1 billion XRP tokens have been increasing since December 22.
- XRP ETFs have attracted $64 million in fresh inflows this week, with no outflows since their November approval.
XRP has declined nearly 15% so far in December, extending its total losses from the yearly peak by 47%. At the time of reporting, the token was trading at $1.88. This drop follows a broader market slowdown, pulling XRP’s market capitalization down from $210.4 billion to $113.8 billion. Daily trading volumes have also dropped significantly, falling from $13.2 billion in July to just $1.8 billion.
Despite the ongoing downtrend, data shows increased activity among large holders. According to Santiment, wallets holding between 10,000 and 1 billion XRP tokens have been steadily increasing their balances since December 22. This trend suggests rising confidence among key investors, which could lead to a potential recovery if the buying continues.
American Investors Maintain Steady ETF Inflows
Investment interest from U.S. markets also appears to be growing. Data from SoSoValue reveals that investors purchased $64 million worth of XRP ETFs over the past week, raising cumulative inflows to $1.14 billion. Current holdings in these funds have reached $1.25 billion, and no net outflows have been recorded since November approval. The absence of withdrawals reflects growing investor interest and continued support for the asset.
A descending wedge pattern has developed on the daily chart, signaling a possible trend reversal. This formation typically occurs near the end of a downtrend. If XRP breaks above the $1.90 resistance level, the chart pattern would be confirmed. Such a breakout could pave the way for a short-term rally toward the $2.58–$2.65 range, a zone that has repeatedly served as resistance throughout the year.
Momentum Indicators Turn Bullish
Supporting the technical setup, the Aroon Down indicator has dropped to 50%, pointing to reduced selling pressure. The Relative Strength Index (RSI) is also hovering near oversold territory, indicating a potential rebound in momentum. These signals align with the wedge formation and could support upward movement in the coming sessions.
