XRP Price Under Strain as Technical Setup Hints at Potential Turnaround

Ripple (XRP) has slumped 11.4% throughout December, positioning the cryptocurrency to end 2025 with losses and snapping a two-year winning streak. Weakening buyer enthusiasm paired with escalating selling pressure—evidenced by surging deposits into major exchange platforms—paints a bearish picture. Yet certain market participants see opportunity. Technical formations and historical parallels with 2017’s bull cycle are sparking discussions about a possible recovery phase.

Exchange Deposit Surge Reveals Intensifying Selling Momentum

XRP has mirrored broader market weakness this quarter, logging back-to-back monthly declines. October saw the token drop 13.8%, while November’s losses accelerated further. The slide persists into the current month, with XRP trading down 11.4% as of mid-December. Current pricing stands at $2.08, with 24-hour volatility showing a -3.08% movement.

Amid this selloff, on-chain tracking data has captured a notable phenomenon: a sharp acceleration in XRP movements to major exchange wallets beginning mid-December. Daily deposit volumes surged dramatically, with inflows ranging from 35 million XRP on typical days to a peak of 116 million XRP on December 19. This departure from previously stable deposit patterns signals a shift in market participant behavior.

Market observers attribute this exodus to weakening investor conviction. Data analysis revealed a striking collapse in long-term holding positions: addresses maintaining XRP for 2-3 years contracted from 14.26% of total supply by late November to approximately 5.66% by end-December. This deterioration in conviction metrics points to increased capitulation among intermediate-term holders.

According to chain analysts, the persistence of elevated exchange inflows poses a genuine obstacle to price recovery. Sustained deposit surges typically precede deeper corrections, as they indicate sellers continue overwhelming buyers. Until these flows normalize or reverse, genuine accumulation patterns may remain elusive.

Technical Chart Patterns Suggest Bullish Reversal Setup

Despite near-term headwinds, several technical observers identify encouraging formations on XRP’s chart structure. One possibility drawing attention is the emergence of a double-bottom (Adam and Eve) configuration on shorter timeframes. This reversal pattern consists of two distinct troughs: an initial sharp V-shaped valley followed by a more gradual, rounded second bottom. The pattern signals potential exhaustion of selling pressure and the start of buyer re-engagement.

What makes this technologically interesting is the comparison some analysts draw to XRP’s 2017 market cycle. Historical price action from that era shows structural similarities to current formations—suggesting the asset may be retracing a comparable path before launching into a sustained uptrend.

Traders following such historical parallels note that 2017 witnessed similar accumulation phases before explosive rallies materialized. If the current setup echoes that structure, a breakout above key resistance levels could unlock significant upside movement.

However, it’s important to acknowledge that historical pattern-matching carries inherent limitations. Market conditions, macro backdrop, regulatory environment, and participant composition differ substantially between 2017 and today. Past patterns don’t guarantee future repetition.

The Fork in the Road Ahead

XRP stands at an inflection point. On one hand, exchange deposit velocity and holder capitulation metrics suggest sellers maintain dominance. On the other hand, chart technicals and historical cycle arguments offer reason for cautious optimism about a reversal taking shape.

The resolution will likely emerge over the coming weeks. If exchange inflows recede and technical resistance breaks decisively upward, recovery momentum could accelerate. Conversely, sustained selling pressure could extend the drawdown further. Market participants will be closely monitoring both on-chain flows and price action at key technical levels to determine which scenario materializes.