XRP Faces Critical Technical Test Amid Conflicting Market Signals

Dec 29, 2025, 6:00 a.m. 10 sources neutral

XRP is poised to close December with an 11.4% loss, ending its two-year streak of annual gains and reflecting a broader market downturn. The token has posted consecutive monthly declines, falling 11.9% in October and 13.8% in November. On-chain data reveals a surge in sell-side pressure, with daily inflows to Binance spiking from December 15, peaking at 116 million XRP on December 19. Analyst Darkfost interprets these elevated exchange deposits as a sign of profit-taking and capitulation, warning they could delay a genuine accumulation phase and prolong the current correction.

Compounding the bearish fundamentals, XRP is testing a critical long-term technical level: the monthly trend ribbon. Historical data shows that sustained losses below this ribbon preceded sharp declines of 65% in 2018 and 54% in 2022. A confirmed monthly close below this level would signal a bearish regime shift. The daily chart structure remains weak, with price trapped in a descending channel below key moving averages, facing strong resistance between $2.40 and $2.50.

Despite the concerning data, some analysts point to potential bullish technical formations. A possible Adam and Eve reversal pattern has been identified on the hourly chart, which could signal a shift from downtrend to uptrend. Furthermore, comparisons are being drawn to XRP's 2017 cycle, with analyst Javon Marks suggesting a similar breakout could lead to a near 8x increase, targeting prices above $15. However, such projections rely heavily on historical symmetry repeating.

As 2025 concludes, XRP stands at a crossroads. Rising exchange inflows and a precarious position at a key historical support level paint a bearish picture, while technical patterns and historical parallels offer a counter-narrative for a potential recovery. The coming weeks will be crucial in determining whether bullish signals can overcome the weakening on-chain and macro-technical fundamentals.

Previously on the topic:
Dec 29, 2025, 10:35 a.m.
XRP ETF Assets Surpass $1.25 Billion Amidst Consolidating Price Action
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