XRP Trades in Extended Correction as Market Waits for Clear Direction

• XRP remains locked in a complex corrective phase with overlapping price swings and limited momentum.

• Neutral funding rates suggest traders are cautious and leverage positioning remains balanced.

• Key Fibonacci resistance continues to cap rebounds while near-term support faces repeated tests.

XRP is still in a corrective phase, which is technically complicated, and it does not indicate an endpoint of the trend, but reluctance. The price action is contained, characterized by overlapping moves, dulled momentum and reserved action as traders are still seeking clearer directional guidance.

Corrective Wave Structure Remains Intact

XRP remains engaged in an extended second-wave correction following a prior impulsive decline. The initial sell-off established a wave one low, setting the broader structure. Subsequent recovery attempts lacked impulsive strength and remained choppy. This behavior aligns with a corrective environment.

Market commentary from More Crypto Online noted that wave two continues stretching in both time and form. Such extensions often exhaust directional conviction before a decisive move emerges. Repeated reactions near Fibonacci retracement zones reinforce technical respect. Resistance near mid-retracement levels continues limiting upside follow-through.

$XRP stretching wave (2) like it’s warming up for something dramatic.
What’s your call? pic.twitter.com/SaGFiZ1qdl

— More Crypto Online (@Morecryptoonl) December 23, 2025

Internal price subdivisions further support a corrective interpretation. Advances labeled as wave A showed weak momentum and limited range expansion. Pullbacks into wave B retraced deeply without invalidating structure. Current oscillations suggest a corrective wave C rather than impulsive continuation.

Funding Metrics Reflect Balanced Sentiment

XRP price action compared with OI-weighted funding rates shows a notable divergence. While price trends lower from higher levels, funding remains compressed near neutral. This pattern suggests reduced leverage conviction rather than aggressive bearish positioning. Traders appear hesitant to commit heavily.

Source: Coinglass

A sharp negative funding spike during mid-October coincided with a rapid downside move. That event resembled forced liquidations rather than organic trend acceleration. Funding normalized quickly after the flush. This rapid stabilization indicates leverage pressure was temporary.

Following that episode, XRP continued drifting lower without sustained negative funding. Traders have not consistently rewarded short positions through funding. This equilibrium points toward spot-driven pressure rather than leveraged momentum. Such conditions often accompany corrective or basing phases.

Intraday Action Shows Controlled Weakness

As of writing, intraday trading shows XRP declining steadily rather than collapsing sharply. Price slipped from the upper daily range toward nearby support zones. Failed consolidation near resistance confirmed limited buyer commitment. Rebounds remained shallow and short-lived.

Support has developed near the $1.85-$1.88 region after multiple tests. A clean break below this area would challenge the current structure. Trading volume near $2.65 billion remains moderate for XRP’s size. Lower volume during declines reflects cautious participation.

Relative performance against Bitcoin remains slightly weaker, signaling selective risk aversion. XRP as of writing, trades near $1.88 amid controlled corrective conditions. Market focus remains on stabilization rather than immediate reversal. Resolution likely follows completion of the corrective phase.