XRP Plummets Over 30% in a Day? Data Reveals the Market Truth Behind the Trading Volume

According to the latest data from Gate.com as of December 5, the price of XRP is $2.10, with a 24-hour decline of 4.63%. Although this differs from the “30% plunge” description, XRP has indeed experienced intense price swings and abnormal changes in trading volume recently.

Just a few days prior, on December 2, XRP saw a significant drop of 6.7%, with the price falling back to around $2.04. Earlier data shows that at the end of November, XRP’s price increased while trading volume diverged sharply, plunging 31.87%.

01 Latest Market Data: The Real Picture of Price and Volume

According to the latest data from the Gate platform on December 5, XRP is currently priced at $2.10, with a 24-hour trading volume of $95.57 million and a market cap of approximately $12.669 billion.

This price level marks a significant pullback from recent highs. Historically, XRP has fallen 4.63% in the past 24 hours, 4.59% over the past 7 days, and 4.81% over the past 30 days.

While prices are correcting, the entire crypto market is also showing signs of weakness. According to ChainCatcher data, after a period of sustained gains, all sectors in the crypto market are undergoing corrections. The PayFi sector is down 3.78% in the past 24 hours, with XRP down 4.37% within this sector.

02 Abnormal Trading Volume: Divergence Between On-Chain Activity and Market Performance

The most notable recent phenomenon in the XRP market is abnormal changes in trading volume. On one hand, on-chain data shows a significant increase in XRP network activity; on the other, exchange trading volume and price trends are diverging.

In early December, XRP’s on-chain activity surged. Data shows that over 1.05 million payments were completed on the XRP network in a single day, an increase of 200,000 transactions from the previous period, marking a 15% daily surge.

Such a spike in on-chain activity is extremely rare and typically only occurs during major events. CryptoQuant data shows XRP’s velocity reached 0.0324 on December 2, hitting a multi-month high and marking one of the most significant activity peaks of 2025.

However, in sharp contrast to the on-chain activity, XRP’s price fell instead of rising as activity soared. This abnormality has drawn wide attention and various interpretations from the market.

03 In-Depth Analysis: Market Disagreement and Institutional Games

The abnormal performance of XRP’s price and trading volume is due to a complex interplay of multiple factors. Technical analysis, news, and market sentiment together shape the current seemingly contradictory market landscape.

From a technical perspective, XRP faces multiple resistance levels. As of December 4, XRP was trading at about $2.17, still below the declining 50-day EMA of $2.32, the 100-day EMA of $2.47, and the 200-day EMA of $2.50.

These key moving averages are expected to cap any price rebound. The daily MACD shows the blue line above the signal line and close to the zero axis, with a slightly rising green histogram, suggesting mild bullish momentum.

On the news front, positive developments are apparently disconnected from market reactions. Ripple recently obtained approval from the Monetary Authority of Singapore to expand its payment services. This regulatory win should have been a positive signal, but the market’s reaction was unexpected—XRP fell 5% after the news was announced.

This “sell the news” phenomenon is not unique in the current crypto market. Analysts point out that XRP is facing resistance at the 20-day EMA, with both the RSI and stochastic indicators trending downward, indicating strengthening bearish momentum.

04 ETF Effect: The Paradox of Capital Inflow and Falling Prices

A noteworthy phenomenon is that inflows into XRP ETFs have not translated into upward price momentum. This apparent contradiction reveals changes in current market structure.

Since the launch of the first XRP ETF on November 13, despite continuous net capital inflows, XRP’s spot price has dropped more than 20% from a high of $2.38 and is now holding around $2.20.

The Canary XRP ETF’s total net assets have reached $3.55 billion, while Bitwise and Grayscale’s ETF net assets are both around $2 billion, showing steady institutional accumulation.

This decoupling of capital inflows and price declines reflects a “buy the rumor, sell the news” market behavior. Before ETF approval, the market often prices in the positive news in advance; once the news materializes, speculators sell to lock in profits.

05 Macro Background: Structural Adjustment in the Crypto Market

XRP’s performance must also be understood within the broader context of the crypto market. The entire crypto market is currently undergoing key structural repairs and trend assessments.

Bitcoin recently rebounded from a low of around $80,000 to above $94,000, with market sentiment improving. This rebound has been driven by macro liquidity, market structure changes, technical conditions, and capital behavior.

On a macro level, expectations for upcoming rate cuts by major central banks are rising, while expectations of marginal liquidity improvement are drawing renewed attention to high-risk assets. According to CME FedWatch Tool data, the probability of a 25 basis point Fed rate cut in December has soared from 35% a week ago to 89.2%.

From a market structure perspective, the current rebound has the classic features of “panic flush + institutional bottom fishing.” During the previous decline, many high-leverage positions were force-liquidated, releasing concentrated liquidity, followed by long-term capital positioning at the bottom.

06 Outlook: Key Levels and Possible Scenarios

For XRP’s future trend, technicals and fundamentals offer different perspectives. The market is closely watching key price levels, which will determine XRP’s short-term direction.

From a technical standpoint, $1.90 is a key support level for XRP. This level has been tested multiple times over the past several weeks, each time prompting buying rebounds. However, repeatedly testing the same support often weakens its effectiveness, as each test exhausts some buying power.

If this key level breaks, a larger correction may ensue, with a target price of $1.65, implying a potential 19% drop from current levels. On the other hand, if $1.90 support holds, the price may test the $2.20–$2.30 resistance range.

Market analysts have outlined three possible scenarios. In the optimistic case, if the surge in on-chain payments does reflect an expansion of RippleNet use cases and institutional inflows are confirmed, XRP could target $2.50.

The neutral scenario sees the surge in on-chain activity as possibly just a technical factor or a one-off event, such as a large institution rebalancing or automated systems batching transactions. In this case, payment volumes would quickly return to normal, and the price would continue to follow existing technical indicators.

The pessimistic scenario warns that the spike in on-chain activity could signal large-scale selling. If institutional investors are preparing to exit XRP positions, they need to consolidate tokens from various wallets to exchanges or OTC counterparties, and this preparatory work would cause a surge in payment volume.

Outlook

As of December 5, XRP is quoted at $2.10 on Gate, quietly staying below several key moving averages. The surge in trading volume stands in sharp contrast to price weakness, and the more than 1.05 million single-day on-chain payments are like powerful undercurrents beneath a calm surface.

On the technical chart, the $1.90 support line has been repeatedly tested and now serves as a psychological defense for both bulls and bears. Meanwhile, capital continues to flow into XRP ETFs, but the price remains under pressure. This contradiction reveals a truth: institutions are quietly repositioning in ways barely perceptible to the market, while retail investors only see the tip of the iceberg.