XRP Faces Sharp Correction: Technical Breakdown Points to $1.50 Support

Source: CoinTribune Original Title: Crypto Market : XRP Heading To $1.50 Original Link: https://www.cointribune.com/en/crypto-market-xrp-heading-to-1-50/

XRP Records Sharp Decline Amid Intensifying Selling Pressure

As the crypto market closes a year under high tension, XRP takes a sharp turn. After riding a wave of optimism fueled by institutional flows and regulatory hopes, Ripple’s asset faces increasing selling pressure. The reversal is clear, technical signals turn red, and investor sentiment flips. This downturn could well mark a new chapter in the trajectory of one of the most watched tokens on the market.

Key Metrics

• XRP records a drop of nearly 50% from its cycle high, falling below the symbolic $2 threshold
• Selling pressure intensifies, fueled by a sharp change in investor behavior
• On-chain data indicates a clear transition between accumulation and distribution in the XRP market
• In the absence of a solid rebound, XRP could continue its fall toward the $1.50 zone, a former demand point

Selling Pressure Fueled by On-Chain Behaviors

The trigger for this corrective phase originates from a market dynamic now largely oriented towards exit. Analyst Darkfost estimates that “selling pressure on XRP has significantly intensified in recent weeks”. This observation is not just a fleeting volatility but a deeper structural phenomenon. According to him, XRP has plunged nearly 50% from its cycle peak near $3.66, currently trading in a critical zone around $1.85.

This reversal is explained by massive asset movements toward exchanges, signs of a clear desire to sell. Analysis of data from CryptoQuant shows that holders, especially the oldest, are adopting a defensive stance.

Several quantified elements confirm this shift toward distribution:

• A leading platform has seen its inflows explode since December 15
• Daily transfers of 35 million XRP were observed, peaking at 116 million XRP sent to exchanges on December 19
• This dynamic contrasts with the accumulation and stability period observed in October and November
• According to Darkfost, this movement is fueled by a combination of profit-taking by long-time crypto investors and capitulation of new entrants positioned higher in the cycle

These on-chain data leave little room for doubt. Holders seek to exit positions, sometimes even at a loss. This trend intensifies selling pressure and makes any rebound attempts harder to sustain.

Technical Structure Degradation

Beyond the behavioral dimension, the price of XRP reveals a particularly degraded technical structure. In recent days, the asset has traded below all its major moving averages, which shows a clear imbalance in favor of sellers. The rejection of the price in the $3.00 to $3.50 zone marked the breaking point, initiating a sequence of lower highs and lows. Today, XRP oscillates between $1.87 and $1.90, in a zone where rebound attempts remain timid.

The $1.80 to $1.85 threshold now constitutes a critical support that has been tested several times, without buyers managing to regain control. The weakness of demand in this zone raises questions about XRP’s ability to stop its decline.

Without a significant slowdown in deposits on platforms, conditions remain unfavorable for an accumulation phase. In short, as long as sellers keep the initiative, the probability of a drop toward the $1.50 zone, identified as a former support point, remains very real.

Outlook

Under tension but still closely watched, XRP remains at the heart of speculation. Despite current turbulence, some technical scenarios reveal rebound potential. The asset’s trajectory remains closely linked to market dynamics and on-chain behavior patterns.