XRP Drops 7% to $2.05 — $2.05 Support Tested, $1.80 Target if Broken
XRP fell about 7% to $2.05 on Dec. 1 after heavy institutional selling overwhelmed spot ETF inflows and triggered a decisive breakdown below the short-term pivot at $2.16. The sell-off produced a 309.2M XRP volume spike (≈4.6× the rolling average), consistent with large-scale distribution and liquidation pressure rather than retail noise. Despite month-to-date spot ETF inflows of $666.6M and a roughly 45% decline in exchange supply over 60 days, derivatives unwinds and concentrated institutional exits pushed short-term flows bearish. Price has entered a descending channel with lower highs at $2.38, $2.30 and $2.22; multiple intraday recovery attempts failed. Traders repeatedly defended the $2.05–$2.00 zone, but a sustained failure at $2.05 would likely target the November demand band at $1.80–$1.87. Key levels to watch: reclaim of $2.12–$2.16 on strong volume to invalidate the bearish structure, and bullish divergence on hourly RSI/MACD as early reversal cues. Short-term tape remains bearish due to elevated volume and liquidation risk, while longer-term outlook depends on whether institutional selling exhausts and ETF-driven accumulation resumes.
Bearish
The news points to a short-term bearish impact on XRP. A decisive breakdown below the $2.16 pivot on heavy volume and a 4.6× spike in token turnover indicates institutional distribution and liquidation-driven flow rather than healthy retail-driven selling. Although spot ETF inflows ($666.6M month-to-date) and a sharp decline in exchange supply (≈45% over 60 days) are constructive longer-term fundamentals, the immediate technical structure is a descending channel with lower highs and repeated failed recoveries. Short-term traders should expect elevated volatility and downside risk: failure to hold $2.05 would likely open a move toward the $1.80–$1.87 demand band, while a reclaim of $2.12–$2.16 on high volume and bullish hourly RSI/MACD divergence would be necessary to shift the near-term bias back to neutral/bullish. In sum, institutional outflows and liquidation dynamics dominate current price action, favoring further short-term weakness but leaving room for longer-term recovery if ETF-driven accumulation resumes.