XRP near $2 descending triangle — breakdown looks likely
XRP is trading around $2 inside a tightening descending triangle after a month of losses, risking a bearish continuation if price breaks the $2 support. The token is about 14% down over the past month and roughly 45% below its July high of $3.65. Spot volume fell ~26% to $3.08bn, futures volume dropped ~25% to $4.16bn, and open interest eased slightly to $3.69bn—signals traders are reducing exposure. ETF flows into Ripple-linked products cooled, with ETF open interest down ~15% and funding rates turning negative, indicating increased short bias. Social sentiment has weakened and long positions are unusually low. A positive catalyst arrived on Dec. 11: Hex Trust launched wrapped XRP (wXRP) bridging native XRP to Solana, Ethereum, Optimism and HyperEVM via LayerZero, debuting with over $100m TVL and early demand on Solana DEXes. Technically, daily indicators (RSI ~42, MACD below zero, moving averages above price) favor the downside; a clean close below $2 would confirm the descending triangle and likely extend the downtrend, while a breakout above the upper trendline would invalidate the bearish pattern but currently has lower probability given momentum. Primary keywords: XRP price, descending triangle, XRP $2. Secondary/semantic keywords included: ETF flows, wrapped XRP, wXRP, volume, open interest, funding rates, LayerZero, Solana DEX. Traders should watch $2 support, the upper triangle trendline, volume and funding rates for trade signals.
Bearish
Price action, volume, derivatives flow and on-chain/fundamental signals point to downside risk. A clear descending triangle on the daily chart, accompanied by falling spot and futures volume (~26% and ~25% drops) and declining open interest, indicates traders are reducing exposure and awaiting direction. ETF inflows into Ripple-linked products have slowed and funding rates turned negative, signaling growing short bias. Technical indicators (RSI ~42, MACD below zero, moving averages above price) lack bullish momentum. Historically, descending triangles in downtrends tend to resolve to the downside when support near the triangle base gives way (similar setups seen in previous altcoin pullbacks after ETF rotation or liquidity drying). The wXRP launch is a constructive long-term development for DeFi access and liquidity but is unlikely to reverse the near-term technical bias immediately. Short-term impact: elevated risk of a breakdown below $2 which could trigger stop-losses and accelerate selling. Long-term impact: improved cross-chain utility from wXRP may support adoption and liquidity over months, potentially reducing volatility and providing fresh on-chain demand if integration gains traction. Traders should monitor $2 support, the triangle’s upper trendline, trading volume, funding rates and ETF flows for confirmation before initiating directional positions.