Ripple’s token breaches significant $2.07 support amid rising volume, indicating a potential for further correction.

News Background

XRP is experiencing conflicting dynamics, with short-term technical weaknesses countered by increasing institutional adoption.
Since mid-November, spot XRP ETFs have garnered almost $850 million in inflows, marking one of the most significant altcoin ETF launches, indicating sustained long-term capital interest.
However, the overall market liquidity stays low, with declining open interest in leverage metrics across major exchanges, suggesting a risk-averse environment with diminished speculative involvement.
Alongside Bitcoin’s ongoing volatility below crucial weekly thresholds, altcoins like XRP are particularly vulnerable to technical failures, even as fundamental demand builds behind the scenes.

Technical Analysis

XRP has spent much of the session trying to hold above the $2.07 support level, but the charts indicate a consistent formation of lower highs — a classic sign that buyers are losing momentum.
Every rejection around $2.11–$2.13 saw increased volume, confirming seller strength at resistance levels.
The decisive shift occurred in the last hour of trading: the $2.07 support finally broke as volume spiked sharply. A secondary surge in volume at 03:24 GMT briefly drove XRP towards the $2.00 mark, validating that the drop was not false but indicative of a deeper downturn.
Momentum indicators now clearly signal bearish trends, with the RSI trending downward from mid-range levels and MACD moving deeper into negative territory. The former support at $2.07 now acts as immediate resistance, a crucial level that must be regained to restore short-term bullish sentiment.

XRP sharply dropped from $2.20 to $2.10, losing 5.7% over a 24-hour range of $0.13, which accounted for nearly 6% volatility. Attempts to regain $2.11 faltered as volume weakened ahead of the decline.
At 19:00 UTC, volume surged to 94.0M — 68% higher than usual — marking a rejection at $2.13, which confirmed the bearish continuation.
Following this, XRP saw levels near $2.09 and briefly entered the $2.00 area as volume again exceeded 1M in a single minute.
The price is currently consolidating within the $2.10–$2.12 range but remains below all intraday resistance levels, maintaining downward pressure.

XRP is now at a pivotal juncture. The breach of $2.07 — a level that had seen multiple retests earlier in the week — clears a technical pathway toward $2.05 and potentially the deeper $1.90–$1.97 demand zone identified by several analysts.
Though there have been robust ETF inflows, institutional spot purchasing could not counteract short-term technical declines. Until the price convincingly reclaims $2.07–$2.11 with significant volume, the trend appears to favor ongoing downside.
A solid rebound from $2.05, coupled with a reclaim of $2.11, would signal that buyers may be regaining strength. Conversely, failure to do so would expose the November lows, extending the bearish cycle into December.